Carl Glendon

Commercial Property Lease Agreement – What Are The Various Types?

A Commercial Lease Agreement is a type of document that specifies all the responsibilities of a tenant and landlord during the renting of a commercial property. It serves as a contract that is legally binding and lets business owners occupy the property of the landlord for commercial or business activities in return for rent. The lease consists of all the basic details about the property and also offers both parties an opportunity to mention their responsibilities and rights. Find out about the various types of standard commercial lease agreement contracts.

Gross Lease

In these cases, the tenant is only responsible for paying the rental amount while it is the landlord who has the responsibility to pay for all other expenses associated to the property. For example, in a Salon or Booth Rental Agreement, the tenant is supposed to pay the owner of the salon, and for being given the opportunity to use an area - such as a booth - for coloring / cutting hair or nails, application of cosmetic products, massaging etc. The case is similar with a Facility Event Space Rental Agreement, an agreement for renting a certain setting for any major event such as a wedding, or even a small event such as a simple private celebration.

This is a simple commercial lease agreement.

Net Lease

Here, the responsibility of rent payments is that of the tenant of course. Alongside, he is also supposed to pay for other expenses like property maintenance, property insurance and / or property taxes. For instance, in a NNN or Triple-Net Lease Agreement, the tenant pays the landlord an amount previously agreed on - along with all the costs associated to the property - which can include real estate taxes imposed by the town / city / county, CAM (common area maintenance) and more. The terms and requirements are likely to change according to the specific case where the rental agreement is signed in.

This type of business lease agreement template is more complex, and needs more terms and conditions to be included. It is important to consult an attorney for proper discussion about this form of blank commercial lease agreement.

Author Resource:-

Carl writes often about legal drafting, rental & commercial lease agreements, power of attorney, Bill of Sale and help the people in such document needs. You can find his thoughts at commercial lease template blog. Please visit this site to get a sample commercial lease agreement in Arizona.