Grand Junction Colorado Real Estate

A wide range of commercial leasing possibilities exist. Typically, an office lease in a major city and a retail lease in a suburban shopping center will be considerably different. Most of the examples below are commonly used when leasing Grand Junction Colorado Real Estate that is commercial property.

From a broad perspective, there are a few types of leases commonly found. Within these categories, leases may vary considerably.

Triple Net Lease (NNN) – There are numerous forms of net leases. The most common of these is the Triple Net lease. In a Triple Net lease, the tenant is responsible for their proportionate share of property taxes, property insurance, common operating expenses and common area utilities. Tenants are further responsible for all costs associated with their own occupancy including personal property taxes, janitorial services and all utility costs.

If the space is part of a larger building, the common area maintenance charges (CAMS) will be divided among the tenants of the building, generally based upon the tenant’s square footage percentage of the overall complex. In general, the landlord will be responsible for the structural integrity of a building.
Net lease: The tenant pays the rent plus a portion of the maintenance fees, insurance premiums and other operating expenses.
Gross lease: The tenant pays a set amount of rent and the landlord is responsible for payment of taxes, insurance and other costs associated with owning the property.
Modified Gross Lease: There are numerous types of modified gross leases that are commonly utilized in multi-tenant office buildings. A modified gross lease is similar to a full service gross lease, except that some of the base services are not included by the landlord (taxes, maintenance, insurance and utilities). The most common types of modified gross leases excludes maintenance, janitorial and electrical. This type of lease is commonly utilized in medical office buildings or multi-tenant single floor office buildings, where different tenants have varying needs for electrical or janitorial services. In general, this type of lease requires separately metering individual office suites to determine electrical usage. Generally in a modified gross lease the Landlord has the right to expense pass-throughs utilizing a “base year.”
Shopping center leases: The tenant pays a base rate in conjunction with the square footage of the retail facility. Typically, the tenant will also pay some common charges and frequently a certain percentage of the gross sales. The tenant may also be assessed part of the property taxes. A shopping mall lease will often include terms about signage, hours of operations, common areas and deliveries. The landlord may also have the right to relocate the tenant.
Land or ground lease: The tenant leases the grounds and builds on the property. Typically, with a land or ground lease, all improvements on the property, including any building or buildings revert back to the landowner at the end of the lease period.
Percentage of Sales lease: Retail lease can have a provision where as the Landlord will receive a percent of the gross sales of the business after reaching an established dollar volume of the business.

There are numerous variations on common lease forms mentioned above. They are examples of the most common leases used for commercial properties. Economic conditions of an area can also play an important part in determining what type(s) of leases are most commonly used in that area!

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