Negotiating A Commercial Lease
At TdD Attorneys at Law LLC, we understand that renting space for your business to operate is often more hassle than opportunity. A lease is NOT an inconsequential contract and can have significant financial and operational impacts on your business. Before negotiating the details of the lease agreement, it may be strategic to negotiate a letter of intent (LOI) that covers the general terms of type, square footage, price, duration, tenant improvement, etc. That leaves the details to be negotiated in the final lease, which is where most people get themselves in trouble.
Do you really want to spend tens of thousands of dollars replacing an HVAC system when only two years remain on your lease?
St. Louis Attorney For Leasing Commercial Real Estate
The most common forms of commercial leases used in commercial, office, industrial and retail real estate are:
- Gross lease (full service): Tenant makes one all-inclusive rent payment; landlord pays almost all expenses, including utilities and cleaning services.
- Modified gross lease: Tenant makes one rent payment, but is responsible for utilities and cleaning services.
- Single net (N lease): Tenant pays base rent plus tenant’s share of real estate tax, utilities and cleaning services.
- Double net (NN lease): Tenant pays base rent plus tenant’s share of real estate tax, property insurance, utilities and cleaning services.
- Triple net (NNN lease): Tenant pays base rent plus tenant’s share of real estate tax, property insurance, common area maintenance (CAM), utilities and cleaning services.
- Percentage lease: Tenant pays base rent plus a percent of sales.
Whether it’s seeking protections if an anchor tenant leaves or goes out of business, ensuring that you have the three-phase electric necessary to operate your equipment, determining what happens if the owner is foreclosed, finding out what personal guarantee is required, or ensuring that the terms regarding attorney’s fees are fair, the experienced commercial leasing attorneys at TdD Attorneys at Law are here to help. Call us today at 314-527-3224 for an initial consultation with a lawyer in St. Louis. You may also reach our team via email.
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