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Commercial leases come in different forms

No standard agreement exists for a commercial lease. In fact, it is typical for people in Los Angeles and other parts of California to negotiate the terms of a commercial lease. A few tips may help to negotiate commercial leases effectively.

First, it is important to consider rental costs prior to leasing a commercial property. Negotiating the rental amount might be possible, depending on the property's location, market conditions and other similar factors. Other costs that are associated with the commercial property might also be considered when doing the calculations reagrding the rent, such as repairs, taxes, insurance and utilities.

In gross leases, the landlord covers the costs of repairs, insurance, utilities and taxes, with the tenant typically paying a higher rent amount but paying the same total every month. With net leases, tenants pay certain rent amounts and then also pay for repairs, taxes, insurance and utilities. With the double net lease, a tenant will pay a certain rent amount in addition to paying the landlord for property taxes and insurance. Finally, with triple net leases, tenants pay certain rent amounts and then pay their landlords for repair, tax, insurance and utility costs.

Different types of commercial leases in Los Angeles offer different benefits to tenants. Whether an industrial property, office building, mixed use or retail property is sought, the failure to negotiate a favorable lease could end up costing the tenant. A California real estate attorney can help negotiate a rental agreement that truly reflects the best interests of the client.

Source: Findlaw, "Negotiating a Lease for Commercial Real Estate", Accessed on Dec. 21, 2016

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