When your New York business outgrows its current building, finding a new location may be challenging. Not only does it need to be in the best place for exposure to customers, the property must also have an owner who is willing to negotiate a lease that is beneficial for you. We at Codispoti & Associates, P.C., have extensive experience assisting clients with commercial leasing agreements.
Forbes magazine points out that your lease is a legally binding contract which could make or break your company. The structure of the lease is typically one way to identify the things you will be responsible for, and what your landlord will take care of. What may work for one kind of business may not be at all good for another, so it is important to compare these facets to the expenses and risks that your particular company may be subject to.
- Net lease: Your landlord pays for all maintenance and repairs on the property, as well as the insurance. You pay for your utilities and the taxes on the property.
- Double net lease: In addition to taxes and utilities, you also pay the insurance premiums. The landlord is still responsible for the costs of maintenance and repairs.
- Triple net lease: Although any structural issues would be taken care of by the landlord, anything else would be your responsibility.
- Modified net lease: An additional amount known as base rent is included in your costs, and it is usually a portion of the utilities, insurance, taxes and other expenses, as well as repairs and maintenance. Many landlords use this structure for buildings with more than one tenant.
Before you sign, you should make sure you also know who will be liable for expenses if there is any damage to the property. More information about commercial leases is available on our web page.