In addition to basic lease terms that address your rent, the duration of your tenancy, and the amount of space that you are renting, here are a few more terms you can expect to see in a commercial lease as suggested in the article, “The Commercial Lease: What You Should Know“:
- Gross Lease vs. Net Lease – in a gross lease, your rent will cover maintenance expenses, insurance, and property taxes. In a net lease you will have to pay for each of these items separately.
- Sign Specifications – your lease will probably include something about signage—where you can put signs and any other specifications that dictate what kind of signs your business can post.
- Repairs – if the air conditioner breaks down, who is responsible for it—you or the landlord? Your lease should address who maintains and repairs the premises.
- Subleasing – you might find yourself in a position in which you do not need all of your space, in which case you might consider subleasing. Your lease will most likely include a section on assigning or subleasing a space to someone else, so have this possibility in mind when you first take a look at your lease.
Educate yourself on what your commercial lease will most likely include!