What is the best type of commercial lease for a tenant?
What is the best type of commercial lease for a tenant?
Single net leases are particularly attractive for tenants as they are responsible for fewer costs. A double net lease sees the tenant foot the bill for two of the three operating expenses, usually property taxes and property insurance.
What is the best type of commercial property?
Properties that are capable of bringing in the highest return on investments are typically those with the highest number of tenants. These properties include RV parks, apartment complexes, student housing, office buildings, and storage facilities.
What is the most used commercial lease?
A Triple Net Lease (NNN Lease) is the most common type of lease in commercial buildings. In a NNN lease, the rent does not include operating expenses. Operating expenses include utilities, maintenance, property taxes, insurance and property management.
What type of commercial lease is most favorable to the landlord?
Triple Net Lease
Triple Net Lease “NNN” In a Triple Net Lease, the tenant usually pays for all or most of the taxes, insurance, and common area maintenance on top of the base rent. This is by far the most favorable for the landlord, as all costs associated with the operation of the building is covered by the tenant(s).
Why is commercial rent so expensive?
Because commercial properties are usually larger, in more central locations and often with more extensive services and resources than residential properties, they are more valuable than houses where people live. Location is the prime determinant of the cost to lease a commercial property.
Who owns most commercial property?
The Top 4 Commercial Property Owners by Square Feet
- Prologis. Prologis is the top commercial real estate owner in the world, with almost 607 million square feet around the globe as of 2015, according to the 2015 Annual Report.
- Blackstone Group.
- Simon Property Group.
- Duke Realty Corp.