Finding the ideal space for housing a business in Los Angeles can no doubt be thrilling. However, an important step in this process is to agree to and sign a lease. Here is a look at the various types of commercial leases that business owners can take advantage of, with each one having both benefits and challenges.
One type of commercial lease is a net lease. This type of lease offers the benefit of coming with a lower rent price. However, tenants who choose these types of leases are also responsible for additional rent fees that cover property maintenance and operation expenses like common area maintenance items, real estate taxes and property insurance. The common area maintenance item fees specifically cover fire sprinkler, parking lot, landscaping, trash, water, sewer, property management and janitorial service costs, among others.
Another type of lease is an absolute triple net lease. This is essentially a net lease but one where tenants absorb all real estate responsibility and risk. For instance, tenants assume responsibility for all repairs and expenses related to the buildings they are leasing, such as the buildings’ structures and roofs.
Finally, the third type of commercial lease is the modified gross lease. The benefit of this type of lease is that a tenant will pay a single set amount each month. Common area maintenance items, property taxes and insurance are included in the single monthly payment amount. However, the tenant will likely cover janitorial and utility services.
Commercial leases can understandably be overwhelming, tricky and confusing. However, an attorney in Los Angeles can provide business owners with the guidance they need to effectively review and negotiate leases before signing on the dotted line. The attorney’s ultimate goal is to make sure that a business owner’s rights and best interests are protected before he or she moves forward with any commercial lease in the Golden State.