Get NY Commercial Lease Agreement

No, a commercial lease does not need to be notarized in New York to be a legally valid document; however, all parties, including the guarantor (if there is one), must sign the commercial lease agreement.

The percentage usually varies over the course of the lease (e.g. for a five-year lease, the broker could be paid 5% of the first year's base rent, and 4% for the second through fifth years).

A New York lease agreement is a binding contract that allows a landlord to rent residential or commercial space to a tenant. It outlines the terms and conditions for the rental period such as responsibilities, monthly rent, and the end date.

A commission, generally paid by the landlord to a leasing broker, for procuring a tenant for a rentable piece of real estate. Leasing Commissions are typically paid at the start of the lease, and are commonly paid both when a new tenant occupies a space and when an existing tenant renews its lease.

Commission is calculated on a lease by the gross lease value paid to the landlord. If it's a multi-year lease, it is paid on the gross value of the multi-year lease. For example, if a lawyer signs a three year lease, pays $2,000 a month, the lawyer pays a $24,000 annual rent to the landlord.

On the other hand, a commission paid upon signing a lease is considered an initial direct cost. As a result, it must be capitalized and included in the right of use asset on the balance sheet for that lease.

The standard commission rate typically ranges anywhere between 4% to 6% of the total rent over the term of lease. Commercial lease commissions are fees paid to a broker or agent for their services in negotiating a lease agreement between a landlord and tenant.

The terms for Manhattan commercial leases generally range from two to 15 years. Because of the costs required to “re-market” a property – including legal fees, build-out costs, and rent lost during vacancy – landlords generally require a minimum two-year lease term.