Here's how you can navigate the advantages of understanding various lease structures in commercial leasing.

I am in the middle of negotiation for a lease in a mall performing at $1600 a foot per the LL. The space is part of a former department store. LL is able to lease the space without the mall extras of $60 + a foot. We were focused on a mall space on a net deal. As the tenant is emerging it is an opportunity to enter a fabulous market place at a more affordable rate. Not all malls are going away, but there will more former department stores pads redeveloped.

A gross lease, or full-service lease, is a commercial lease where the landlord covers most property-related expenses. This benefits tenants by providing a single, all-inclusive rent that simplifies budgeting and allows them to focus on their business. Landlords benefit by attracting tenants with straightforward agreements and maintaining better control over property upkeep. Overall, gross leases offer predictable expenses and reduced administrative burdens for tenants while ensuring high property standards, fostering a mutually beneficial relationship that enhances satisfaction and property value.

This is by far my favorite type of lease for both landlord and tenants. A net lease shifts some property expenses from the landlord to you. It comes in three types: - Single Net Lease (N): You cover property taxes. - Double Net Lease (NN): You cover property taxes and insurance. - Triple Net Lease (NNN): You cover property taxes, insurance, and maintenance. Advantages: Lower Base Rent: Net leases usually offer lower base rents, reducing initial costs. Expense Management: Efficiently managing these expenses can lead to significant savings. Control & Transparency: More control over expenses and better budgeting. Net leases aren't just about lower costs; they're a strategic move for better property management and financial efficiency.

percentage leases offer a dynamic approach to commercial leasing, aligning rental payments with business performance. By grasping this lease type and negotiating terms that accommodate your business's needs, you can effectively manage costs and maximize profitability in your retail space.

lease term negotiation is a collaborative process that requires careful consideration of both parties' needs and objectives. As a real estate agent, our role is to facilitate these discussions, advocate for our clients' interests, and ultimately, achieve successful lease agreements that drive value and mutual satisfaction.

It is important to define the condition and timing of the premises. A tenant should consult am architect and or a contractor to walk the space and review the LL work letter. These actions will bring to light the cost of preparing the space for occupancy