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Finding the right lease for commercial real estate

| Oct 9, 2019 | Real Estate |

Businesses need commercial space in which to operate. If an Ohio business owner is looking to open the company’s doors for the first time or needs a larger space to operate, finding the right commercial real estate is important. Of course, after finding the right space, ensuring the right lease terms is also wise.

There are four types of commercial leases that may be worth considering. First, individuals may consider the gross lease. With this type of lease, the landlord maintains the financial responsibility for operating costs of the space, though possible exceptions could exist, and the payment for the space usually does not change month to month. Another type of lease is the triple net lease, or the NNN lease, which involves the tenant paying part of the operational expenses. The tenant may need to pay rent, insurance and maintenance costs.

An option that falls between the previously mentioned two is the modified net lease. Often, this type of lease can be beneficial for both the landlord and the tenant as the tenant pays the base rent for the first year and then contributes to operating costs later. The fourth type of lease is the percentage lease, which involves the tenant paying the base rent and a percentage of the monthly sales volume.

If individuals are leasing commercial real estate for the first time, it can be particularly difficult to know which type of lease may best suit their situations. Luckily, Ohio business owners can seek the advice of experienced real estate attorneys. Having a legal professional go over and draft a lease can ensure it works in the best interests of those involved and is enforceable.

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