Our dedicated team of experienced lawyers is committed to helping clients throughout the greater Miami area find the real estate property they need to run successful businesses. Miami has some of the most beautiful properties in the United States. However, zoning codes and various laws can make it difficult to obtain the property you desire. That is why we are here to provide top-notch legal counsel throughout the entire process! Keep reading to find out what you need to know about four different types of commercial leases.
#1: Full-Service Lease
A full-service lease, sometimes called a “gross lease,” is a rental agreement in which the landlord covers all of the operating expenses related to the unit. Insurance, property taxes, and maintenance costs are examples of what the landlord would be required to cover under this agreement. Some full-service leases include an “expense stop” that sets a cap for the total amount that the landlord is required to pay for operating expenses. The tenant is responsible for operating expenses once the expense stop amount has been exceeded.
#2: Modified Gross Lease
Under this type of lease agreement, the tenant still pays rent to the landlord, as well as a portion of the operating expenses after the first year. The modified gross lease ensures that both the landlord and the tenant our financially responsible for some of the operating expenses.
#3: Net Lease
Similar to the modified gross lease, the net lease agreement creates an arrangement where the tenant is responsible for paying a portion of the unit’s operating expenses and monthly rent. There are four types of net leases:
- Single Net Lease: The tenant is responsible for covering either insurance, property taxes, or maintenance costs associated with the unit.
- Double Net Lease: This agreement stipulates that the tenant has to cover two of the three major operating costs (insurance, property taxes, and maintenance costs).
- Triple Net Lease: The tenant is responsible for covering all operating costs in addition to the monthly rent.
- Absolute Lease: In addition to paying for monthly rent and all operating expenses, the tenant must also cover repairs to the roof and structure of the building.
#4: Percentage Lease
This type of lease agreement only applies to retail commercial properties. A percentage lease requires the tenant to pay a percentage of their monthly gross sales, in addition to their monthly rent, to the landlord. Shopping centers or strip malls generally utilize this type of lease.
Consult with a Miami Real Estate Lawyer Today
Do you have more questions about determining which type of lease agreement is the right option for your business? Then call SimplyLegal today to speak to one of our experienced legal professionals about your situation. We understand how overwhelming it can be when you are looking for a commercial property in South Florida, and we will gladly answer all of your questions and concerns.
To set up your consultation with a lawyer at SimplyLegal, call (305) 676-9328 today!