News That Matters

Commercial Lease | What Property Owners Need To Know

Commercial leases come with a world of legal jargon, which can be confusing for those who are new to the commercial real estate game. This article will break down the basics of commercial leases, and the things that property owners need to know about them. Commercial real estate for lease can be a great option for businesses looking for a new space. There are many benefits to leasing commercial real estate, including the ability to get a space that is up and running quickly and the flexibility to move if your business needs change.

The Commercial Lease

When it comes to leasing commercial property, there are a few key things that every property owner should keep in mind. First and foremost, it’s important to have a clear understanding of the difference between a commercial lease and a residential lease. While both types of leases involve renting out a property, there are some key differences that you need to be aware of. For starters, commercial leases are generally much longer than residential leases. Whereas most residential leases are for one year, commercial leases are typically for three to five years. This is because businesses tend to need more stability than individuals when it comes to their office or retail space.

Another key difference is that commercial leases often require the tenant to pay for things like property taxes and insurance, whereas these expenses are typically included in the rent for a residential lease. Finally, commercial leases often have provisions for things like renewals and option periods built into them, whereas residential leases typically do not. Keep these key differences in mind as you begin the process of leasing your commercial property. By doing so, you’ll be sure to set yourself up for success!

What are the types of commercial leases?

When it comes to leases for commercial property, there are a few different types that property owners need to be aware of. The most common type of commercial lease is the triple net lease, which is where the tenant is responsible for paying all of the operating expenses for the property, including taxes, insurance, and repairs. This type of lease is typically used for office space or retail space. This type of lease is typically used for industrial space or warehouses.

What are the rights and obligations?

As the owner of a commercial property, it is important to be aware of the rights and obligations that come with leasing the property to a tenant.

The following is a brief overview of some of the key points to keep in mind:

Rights of the Property Owner:

  • To receive rent payments from the tenant in accordance with the terms of the lease agreement.
  • To have the property maintained in good condition by the tenant.
  • To have repairs and/or renovations carried out on the property as specified in the lease agreement.
  • To evict a tenant who breaches the terms of their lease agreement.

Obligations of the Property Owner:

  • Ensure that the property is fit for habitation and complies with all relevant safety regulations.
  • To carry out any repairs and/or renovations that are stipulated in the lease agreement.
  • To provide the tenant with written notice if there are any changes to be made to the terms of their lease agreement (e.g., an increase in rent).

Who is responsible for what in a commercial lease contract?

The first step in understanding who is responsible for what in a commercial lease contract is to understand the difference between a tenant and a landlord. A tenant is someone who rents property from a landlord. A landlord is someone who owns the property and rents it to tenants. One of those terms is typically who is responsible for what expenses are related to the property.

Some common examples of expenses that may be included in a commercial lease are:

  • Taxes
  • Insurance
  • Maintenance and repairs

Utilities Who pays for each of these items can be negotiated between the landlord and tenant. It is important to have a clear understanding of who is responsible for what before signing a commercial lease contract. Otherwise, there could be disagreements down the road about who should have paid for something.

How might this affect my property taxes?

If you are a property owner, you may be wondering how a commercial lease can affect your property taxes. The answer to this question depends on a few different factors, including the type of property you own and the location of your property. In some cases, the amount of rent you charge your tenants can impact your property taxes. For example, if you live in a state that charges higher taxes on properties with higher rents, then charging your tenants a higher rent could result in a higher tax bill for you.

The location of your property can also impact how your commercial lease affects your taxes. If your property is located in an area with high taxes, such as New York City, then leasing it to a tenant may result in a higher tax bill for you.


As a property owner, it’s important to be aware of the different types of commercial leases that are available. We hope this article has helped you better understand the different types of commercial leases and building blocks toys what they entail. If you have any questions, feel free to reach out to our team of experts for assistance.

Leave a Reply

Your email address will not be published. Required fields are marked *