Lease Types and Obligations

March 17, 2021

In commercial office leasing, there are a number of ways owners charge rent and operating expenses.  We always negotiate how operating expenses are accounted for and charged to the tenant when we work with you on your office lease.  Below is a graphic we created to show the range of lease types and where the obligation resides (with the Landlord or the tenant).

Having an experienced advocate on your team when you negotiate is paramount because operating expenses can be over 40% of your total rent.  The below illustration spells out the difference between some of the common commercial real estate lease types in the United States. This graphic will allow you to see how rent is broken down and who has the obligation to pay the bill depending on your lease type.

Send me an email or call if you have any questions on your existing lease or if you need help with dealing with your landlord.

Craig
602.954.3762

Please Note: Clearly, this is a simple overview.  We would strongly recommend you call us to go over our process in more detail.  In many cases, a bill paid by the Landlord does not necessarily mean that is not an obligation of the tenant.

Click here to view the graph larger.

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