{"id":2587,"date":"2021-05-25T12:00:00","date_gmt":"2021-05-25T12:00:00","guid":{"rendered":"https:\/\/thegenaugroup.com\/?p=2587"},"modified":"2021-05-24T20:42:10","modified_gmt":"2021-05-24T20:42:10","slug":"leasing-retail-space","status":"publish","type":"post","link":"https:\/\/thegenaugroup.com\/leasing-retail-space\/","title":{"rendered":"Tips to Help Tenants Successfully Lease Retail Space"},"content":{"rendered":"\n
Deciding to lease retail space<\/a> for any business can feel overwhelming, but you can simplify this process by conducting comprehensive background research on the critical elements of your lease. Commercial leases are less regulated than residential leases covering longer time frames, but they offer greater flexibility in negotiating terms. <\/p>\n\n\n\n Your ability to understand different lease types and carefully interpret the detailed terms and conditions will help you successfully lease retail space. This guide takes a deep dive into the key elements of retail lease agreements any tenant should understand before commencing negotiations.<\/p>\n\n\n\n It is crucial before leasing retail space to have a sound understanding of all the different types of commercial leases on the market and which is most appropriate for your business model. Here is some detail on the most common types:<\/p>\n\n\n\n The tenant is responsible for the base rent, but the landlord covers some or all of the building expenses \u2013 such as maintenance fees, insurance, and real estate taxes. This type of lease can include the following variations:<\/p>\n\n\n\n It\u2019s wise to know these variations and what they contain, because the differences can represent substantial potential costs to the tenant.<\/p>\n\n\n\n These are often used for retail and shopping malls, where the tenant pays base rent and a percentage \u2013 typically from 5% to 10% \u2013 of all retail sales to the landlord. Be ready to negotiate to get the best percentage, and never agree to more than 10%.<\/p>\n\n\n\n Absolute leases resemble Triple Net Leases (NNN). They are commonly signed by large national companies with excellent credit, such as Walmart, that need large properties. Tenants pay their base rent and all other building expenses (taxes, insurance, maintenance), including roof and structural repairs. <\/p>\n\n\n\n After deciding on the right lease type, the next step is to scrutinize the main elements of your lease agreement. This is an excellent time to consider tenant representation services<\/a> if you are uncertain and want to negotiate the best deal.<\/p>\n\n\n\nUnderstanding the Different Types of Commercial Leases<\/h2>\n\n\n\n
Full Service or Gross Lease<\/h3>\n\n\n\n
The tenant pays utilities and property tax, and the landlord is responsible for maintenance, repairs, and insurance.
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The tenant pays utilities, property taxes, and insurance, and the landlord covers maintenance and repairs. This is a common approach for office leases.
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The tenant is responsible for all building costs, and the landlord has to pay for any structural repairs.
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The tenant and landlord split structural repairs, operating expenses such as property taxes and insurance, and utilities as base rent. This is also known as a modified net lease.<\/li><\/ul>\n\n\n\nPercentage Leases<\/h3>\n\n\n\n
Absolute Leases<\/h3>\n\n\n\n
Read the Fine Print: 8 Terms & Conditions to Know<\/h2>\n\n\n\n