Jump to Navigation

Types of commercial real estate leases

When looking for a location, a business owner in Texas may see a variety of commercial real estate leases for different properties. The differences between these have the potential to cause extreme financial hardship or to benefit the company in the long-term. Choosing the type that will best suit the business is typically not a decision that should be made before reviewing the properties available.

According to TheBalance.com, a retail business may be offered a commercial real estate lease known as a percentage lease, which includes an additional payment that is figured using the company’s sales for the month, as well as the set monthly rent payment. This has the potential to raise the amount paid significantly, depending on the type of business.

On the other hand, the amount of rent may be higher if a landlord offers a gross commercial lease because the property expenses are included, but the monthly payment is set in the lease. So, the tenant pays more each month but is off the hook for maintenance and repair issues, as well as taxes and other financial responsibilities.

Triple net leases are also common for retail locations, although they are also often a landlord’s choice when renting to a business that may have high monthly expenses, such as industrial companies. TheBalance.com notes that a tenant who signs a triple net lease typically enjoys a much lower monthly rent, but may more than make up for it in maintenance and repairs if the building requires significant attention. However, a company that is able to keep most monthly costs low may be able to take advantage of the low rent and save by choosing that location.

No Comments

Leave a comment
Comment Information
HOW CAN
WE HELP YOU?
CONTACT US
fill out our 1-step form ›

Let Us Help You -
Contact Our Firm Today:

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location

The Jackson Law Firm
3900 Essex Lane Suite 1116
Houston, Tx 77027

Local 713.574.5181
Toll Free 877.475.3058
Fax 713.527.8850
Houston Law Office Map

Review Us
FindLaw Network Subscribe to this blog's feed ►