If you have recently started a business in the state of New York, you will undoubtedly be looking for a suitable location to run your business from. Finding the appropriate office or retail premises can be fundamental for setting up your business for success. However, signing a lease and understanding the terms can be quite overwhelming, especially if you are doing it for the first time.
It is important that you understand the different types of commercial leases that are available so that you can evaluate which might be the best choice for you. Working with your landlord to establish lease terms that work for both parties is essential. The following are some of the most common types of commercial leases used in New York.
If you don’t want to be worried about unexpected costs for insurance, bills and maintenance, a gross lease, otherwise known as a fully serviced lease, might be best for you. A gross lease means that you will pay a fixed price for the rent, which will be inclusive of essentially all costs.
Percentage leases are likely to have the lowest base rent. However, they work on the terms that you will pay a certain percentage of monthly sales to the landlord, which can be a downside.
Net leases can vary significantly in terms, but they usually involve the tenant paying for some expenses, such as taxes and insurance.
If you are unsure of what type of commercial lease would be most lucrative for your business, you can learn more from an experienced attorney.