Whether you’re launching a tech startup or opening a new restaurant, the success of your new business might hinge on finding the right location and negotiating a commercial lease. While these documents have features in common with a residential contract, they’re often much more complex, with different fee structures and fewer landlord obligations. Knowing what a tenant lease is and how to find the best option will ensure you get the right space with the most favorable terms possible.

A Quick Guide to Commercial Leases

What Is a Commercial Lease?

Like a residential rental agreement, a commercial lease gives you the right to use a particular property and outlines the obligations of each party. However, these leases usually have longer terms and are often open to negotiation. For instance, many landlords are willing to make improvements to a property, change the fee structure, and make other concessions to attract the right tenant.

Types of Commercial Leases

There are a variety of commercial lease options, which makes choosing a property confusing for first-time business owners. A full-service lease is all-inclusive, which means the rent is static and the landlord is responsible for all repairs, maintenance, taxes, and insurance.

Net leases typically have lower base rates than full-service contracts, but the landlord can charge additional fees to cover the property taxes, insurance, and maintenance of common areas. Gross leases are a combination of the other two, with set rent rates that include lump-sum payments for the same additional expenses of a net lease. With a gross lease, your rent won’t increase even if the property taxes or insurance costs go up, giving you the stability to plan your expenses.

With a portfolio of beautiful, historic commercial buildings throughout Lexington, KY, Winmar Corporation has been providing high-quality service to business owners since 1951. Whatever industry you’re in, their office buildings will help you create an environment that will impress employees, clients, and business partners alike. Visit their website to browse their properties, and call (859) 254-5755 to schedule a tour and discuss their commercial lease options.