A commercial lease agreement is a contract between a renter and the owner of a commercial property. In New York, every commercial lease contract varies and will include different terms, though state and local law can dictate whether the terms are enforceable. It’s vital for all parties involved to understand the intricate provision of their contract before signing any documentation.
Commercial lease agreements vary based on the type of real estate, the uses of the commercial property and the number of tenants. The most common types of commercial properties include office, industrial, multifamily and mixed-use properties. The number of tenants affects the extent of duties and responsibilities of the landlord.
The types of commercial leases determine who pays which expenses in a written agreement. A full-service lease includes the base rental rate and the expenses combined into one payment. A net lease agreement includes the tenant’s obligations to pay the rent, taxes and other fees. A triple net lease is the main structure that includes payment of the base rent with the property taxes, insurance and maintenance fees. A modified gross lease requires the payment of base rent and partial operating expenses.
The average length of a commercial lease ranges from three to five years. The durations may change based on the landlord’s needs, the reliability of the tenant and changing financial situations.
Commercial lease agreements consist of written terms that define the long-term relationships between landlords and tenants. Such agreements detail the rights and responsibilities of the tenants, landlords and visitors.
Since each one will vary, seeking guidance from a legal advocate who can review the contract terms in depth, ensure your rights are protected, and answer any questions you may have about your obligations is advised.