What are the terms of a commercial lease?
A typical commercial lease is a “5 and 5”, meaning a 5 year lease, with an option to renew for another 5 years. Options usually must be exercised by writing a letter to the landlord some months before the initial lease term expires, expressly exercising the option.
What is a medical lease?
A medical clinic lease agreement is a much different type of lease than would be used for normal lessees. These leases will be used specifically for medical practices and will contain provisions unique to this field.
What is the normal term for a commercial lease?
Most leases have fixed terms between six months and 125 years. The length of the fixed term is usually negotiated by the landlord and the tenant before the lease is created.
What are the terms of a lease called?
Defined as the period of time in which a contracted lease is in place, lease term establishes the time period to both the lessee and lessor. Lease terms generally come on 3 forms: fixed, periodic, and indefinite.
What is the most common type of commercial lease?
Triple Net Lease
A Triple Net Lease (NNN Lease) is the most common type of lease in commercial buildings. In a NNN lease, the rent does not include operating expenses. Operating expenses include utilities, maintenance, property taxes, insurance and property management.
What does 100% leased mean?
A Single-Tenant Triple-Net property (also known as “Net-Lease”, “STNL” or “NNN”) refers to a property which is 100 percent leased to one tenant with a lease structure in which the tenant is responsible for all property-related expenses, leaving the landlord with minimal responsibilities.
How many square feet does a physician need?
Space is measured in square feet. A rule of thumb for the size of a practice facility is 1200 to 1500 square feet for the first physician and 1000 to 1200 square feet for each additional physician up to 4 or 5. Certain professional suites, such as those for psychiatrists, have less need for space.
What makes a commercial lease invalid?
What makes a commercial lease invalid? A lease is automatically void when it is against the law, such as a lease for an illegal purpose. In other circumstances, like fraud or duress, a lease can be declared void at the request of one party but not the other.
What is the process of leasing a commercial property?
Commercial leases come in three main forms: full-service leases, net leases, and modified gross leases. The process of identifying, negotiating, and signing a commercial lease is a long one.
What voids a lease agreement?
Most of the time, a lease is void if it is fraudulent or signed under duress (being forced to sign a lease). Additionally, your lease may be null and void if your rental unit is considered illegal in your state. For example, in some states, basement apartments are illegal.
How long does it take to negotiate commercial lease?
Typically, a smaller straight forward negotiation would take 6 to 8 weeks – a very complex arrangement may take many months.
How do you negotiate a commercial real estate lease?
Negotiating the lease Contact your tenant via phone or email and invite a negotiation of the lease. Negotiate the new lease arrangements and come to an agreement. Write down the agreement. Send the agreement to your tenant to sign and return to you, and keep a copy for yourself.
What are the lease terms for a business?
Typical Commercial Lease Terms That Everyone Should Know. 1 Triple Net (NNN) A triple net lease, or a net lease, is one of the most common lease structures. It requires the tenant to pay base rent along with 2 Full-Service Gross (FSG) 3 Modified Gross (MG)
What are the different types of commercial leases?
Commercial leases can be structured in a variety of ways, depending on the type of property, type of business, and number of tenants. Here are a few of the most common structures. A triple net lease, or a net lease, is one of the most common lease structures.
What are the typical commercial real estate terms?
Here are some of the most typical commercial real estate terms everyone should know. Commercial real estate can be delivered to a tenant in a variety of conditions. The condition that a space is delivered in is classified by the amount of improvements and amenities a space has prior to being leased.
What are the delivery conditions for a commercial lease?
Let’s dive into a few of the most common delivery conditions for commercial leases. A vanilla shell lease, or whitebox condition, can be one of the sweetest deals you get.