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Demystifying Leases

Finding a location for your business is one of the most important decisions you can make. Deciding on the type of lease structure you might run into when renting a commercial space can be the most confusing part of the process. Here are the 6 most common types you might run into. Gross Lease Also known as a Full-Service Lease the landlord covers all the building expenses. This is a commercial  lease  where the tenant pays a flat rental amount, and the  landlord  pays for all property charges regularly incurred by the ownership, including taxes, utilities, and water. This lease generally refers to a “base year” to start payments and stipulates a certain escalation in cost to cover inflation. The rent amount is calculated based on the cost of rent, with a reasonable markup and may include the cost of other services like janitorial or landscaping.  The advantage to this is that it is a flat rent cost similar to that of a conventional apartment lease and ...