Commercial Property Lease Process
If you are a commercial property owner looking for tenants and need help negotiating the lease process – we are here to help. Below are some of the details that we usually help you with when finding and leasing a commercial property with a tenant:
- Understand Different Types of Commercial Leases
- Full-Service lease
- Modified gross lease
- Net lease
2. Find the Right Commercial Property
3. Potential business who want to lease a commercial property may want to conduct several walkthroughs of your property before making a decision. We help you with this process.
4. We help you and any tenants negotiate commercial lease terms. This part of the process normally includes:
- Receiving and reviewing a Letter of intent
- Description of the business show wants to lease your building
- Number of years in business
- List of products and services and their prices
- Proposed terms
Commercial Space Lease Agreement
A commercial space lease agreement is a contract used when renting business property to or from a business or an individual. It gives the tenant or the renter the right to use the property for different purposes. In exchange, the business or the individual will make a payment to you, the commercial property business owner.
The commercial lease covers the information of the tenant or the landlord and usually includes the following:
- Guarantor
- Rent
- Pertinent business information
- Duration of the lease terms
What does a Commercial Lease Commonly Cover?
A commercial lease commonly includes the following:
- The address of the property that is being rented
- The type of property that is being rented
- Term of the tenancy
- Whether the tenancy is for a fixed term or will renew periodically
- The amount of the rent
- How often will the rent be paid
- The type of business that will be conducted on the property
- Ownership of leasehold improvements
- Provisions of damages and security
The commercial lease agreement might also cover the following:
- Lease renewal provisions
- Signing incentives
- Landlord improvements
- Tenant improvements
- Whether the tenant can sublet or assign the property
- Insurance provisions
- Notice provisions for termination of tenancy
Requirements for Renting Commercial Property
Commercial leasing differs from other forms of leasing, such as residential leases, and the owners of the business have different responsibilities, needs, and rights. When you rent a property to a tenant, you will most likely go through a lengthy process.
The negotiations of the lease terms, such as deciding the amount of the rent, are also lengthy. Below are the types of property that can be used for commercial lease:
- Retail Stores
- Offices
- Industrial Building
- Warehouse
- Restaurants
- Multi-use Building
The main requirement of renting a commercial property is to hire a broker to streamline the process and accelerate it. The commercial brokers will also make sure that the commercial property you invest in meets the requirements of your business and helps you negotiate the lease terms.
Our team is well-versed in helping commercial property owners leas their property to tenants. If you have questions or have a commercial property coming up for lease soon and need help, contact us.