A wide range of commercial leasing possibilities exist. Typically, an office lease in a major city and a retail lease in a suburban shopping center will be considerably different. The urban centers always help to develop your business.
Of course, if you are lacking sufficient capital to purchase a commercial building, then the decision becomes an easy one. But leasing may be the smartest move anyway: Statistics show that most new business owners start out by leasing office space, and many business consultants advise leasing your work space until you get on your feet and your business starts operating in the black. Some advantages to leasing your business property:
Gross lease: The tenant pays a set amount of rent and the landlord is responsible for payment of taxes, insurance and other costs associated with owning the property.
Fewer responsibilities. The property manager or landlord is the one responsible for maintenance, security, remodeling, and other management issues. Deductible payments. If the arrangement is a true lease (and the Internal Revenue Service agrees it is), then lease payments are deductible as operating expenses.
Triple-net lease: Typically, for a freestanding facility, this type of lease has the tenant paying for all fees and operating expenses associated with the space.
Assignment and subletting. Companies should negotiate enough flexibility in the assignment and subletting clause to allow for mergers, reorganizations, and share ownership changes. Option to renew. Try to get the option to renew your rent at a fixed predetermined price, not based on a “fair market” price.
Land or ground lease: The tenant leases the grounds and builds on the property. Typically, with a land or ground lease, all improvements on the property, including any building or buildings revert back to the landowner at the end of the lease period.
There are numerous variations on common lease forms. For example a lease may cover both office and warehouse space in one facility with separate rental amounts and separate options.
The truth about building rent is finally revealed! Visit us at commercial office rent in miami fl to get all the free insider information.
