Loopnet For Lease (2024)

FAQs

What is the best commercial lease for a tenant? ›

Gross leases tend to benefit the tenant, whereas net leases are more landlord friendly. In a gross lease, the tenant has more control over how much is spent on such expenses as janitorial services and utilities.

There are three different types of net leases: single, double and triple net lease. A triple net lease, sometimes known as an NNN lease, is the most common type of commercial lease.

Benefits of a FSG lease

In addition to being very straightforward, some of the other main benefits of a full service gross lease include: Total rent charged is higher than the base rent with a NNN lease.

A fixed-term lease is great for landlords and tenants because they both can predict and rely on the fixed rental cost every month. It's still possible to cancel a fixed-term lease, however, the tenant may end up paying a penalty for breaking the agreement.

Triple Net Lease:

The triple net lease encompasses property taxes, insurance, and common area maintenance, with the tenant paying for some or all of the cost of these three things on top of their base rent. It is one of the most common lease types.

A percentage lease is most commonly associated with retail tenants. In a percentage lease, the tenant pays a base rent plus a percentage of their sales. This type of lease arrangement is often used in retail settings where the tenant's sales are directly related to the success of their business.

Percentage leases are most often used with retail tenants. Multi-tenant retail properties, such as malls and shopping centers, use this type of lease because it benefits both parties involved.

A gross lease, or a full-service lease, is the most common type of lease. A gross lease has a predetermined rent that covers costs associated with owning the property, including things like tax, building insurance, and maintenance.

Prepare a counter-offer

Always ask for more than you think you want. Want three months free rent? Ask for five! Areas where you might negotiate can include the initial deposit, the lease length, and free months if you sign a longer agreement.

Can you negotiate price at end of lease? ›

The price of a lease-end buyout is usually set in the contract at the start of your lease. It's based on the residual value at the end of the leasing term. It is possible to negotiate for a better price. An early lease buyout can benefit drivers who are looking to avoid mileage and service penalties.

In a lease deal, negotiables include the capitalized cost, mileage limit, lease buyout price, disposition fee, down payment, and any trade-in value as applicable. You want to minimize the difference between the capitalized cost and residual value to lower your monthly payment.

NNN stands for net, net, net. It means that the tenant pays most of the expenses. They pay the rent fees plus property taxes, property insurance, and CAM, or common area maintenance. The NNN fees are added onto the base rental fee, which is usually calculated as a dollar-per-square-foot number like $15.

Full-Service (FS) Lease

The landlord uses the rental income to cover every expense involved in the property's operation. This includes the base rent, maintenance, property taxes, building insurance, and utilities.

A triple-net lease can be a good option for landlords and tenants. While landlords can hand off paying various property expenses, enjoy a stable source of income, and focus on their own business, tenants, on the other hand, may receive a lower monthly rent and maintain control of the property.

The Best Types of Tenants for Commercial Properties

Automotive centers, gas stations, and even restaurants are often selected because they are closest to their customers. So if you have a flat tire, for example, you're going to the nearest mechanic rather than the cheapest or a local favorite.

A modified gross lease allows the landlord and the renter to negotiate which utilities will be covered by each party. For example, in a modified gross lease the renter may pay electricity costs, but the landlord is responsible for waste removal.