What is Commercial Property to Lease?
Commercial Property to Lease – or Commercial Property to Rent – is defined as the undertaking of commercial property in order to facilitate and house business operations and commercial endeavors on a temporary basis.
Lease Options for Commercial Property to Rent
Triple Net Lease
A triple net lease is a type of lease undertaken within the renting – or leasing – of commercial real estate; the parameters of this lease state that the commercial tenant be responsible for not only lease payments, but also the provision of applicable taxes, repair, and insurance. Within the parameters of a Triple Net Lease with regard to Commercial Property to Lease, there exist a variety of advantages and disadvantages latent within such an option:
Upon choosing a specific leasing plan for Commercial Property to Lease for business use, an individual business owner may opt for Triple Net Lease due to the fact that there exist a possibility to transfer the status of the lease to an intent to purchase
The Triple Net Lease allows an individual to maintain a heightened sense of authority and agency over the Commercial Property to Rent; rather than allowing the landlord of property owner to mandate or authorize upkeep, that authority is granted to the renter
A Gross lease is another type of lease applicable to commercial real estate; in this lease agreement, the commercial tenant is solely responsible for the provision of lease payments – the landlord is responsible for insurance, tax, and maintenance payments; although this leasing plan differs from other leasing plans with regard to Commercial Property to Rent, both advantages and disadvantages are presumed to accompany any respective leasing plan:
Upon engaging in a leasing plan with regard to Commercial Property to Lease, the building owner or landlord will maintain control over repair and maintenance, freeing the renter of such responsibilities
A Gross lease relieves the renter from undertaking additional fees outside of the base rental payment upon undertaking a rental plan for a Commercial Property to Lease; this includes accompanying taxation, insurance, and funding for maintenance
Commercial Property to Lease vs. Commercial Property to Buy
For those interested in purchasing Commercial Property in lieu of facilitating a leasing plan with regard to Commercial Property to Rent, commercial mortgages are available to facilitate this process. A mortgage is a type of loanthat is utilized by an individual interested in obtaining property whose value exceeds the financial means possessed; however, upon approval, the borrower of a mortgage loan will be responsible for the following:
Upon the approval of mortgage loan, the borrower is indebted to a mortgage lender, which is the institution that provides a mortgage loan; the receipt of a mortgage loanwill typically include supplementary fees and financial restitution
Interest accrued from the initial loan
Penalties incurredresulting from late payments to the failure to make payments
The provision of collateral in the form of the property being occupied by the individual in receipt of the loan