Difference Between A Commercial And Retail Lease In Allegheny
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Gross Lease Gross leases are most common for commercial properties such as offices and retail space. The tenant pays a single, flat amount that includes rent, taxes, utilities, and insurance. The landlord is responsible for paying taxes, utilities, and insurance from the rent fees.
Commercial real estate is used for businesses, while residential real estate is used for living. Compared to residential properties, commercial properties tend to be more stable and liquid because they are easier to sell.
As the name suggests, a retail lease applies to those spaces or premises intended exclusively for retail, i.e. selling goods or services. For example, the premises used for a clothing store is leased out on a retail lease.
“Commercial space” generally refers to office space. With commercial space, there may not be as many people wandering in and out, whereas “retail space” depends largely on foot traffic. Commercial space is typically used for businesses that don't have a lot of foot traffic.
Key Takeaway differences: A retail lease is used where there is a sale of goods or services, often in a shopping centre (cluster of 5 or more stores). A commercial lease is used for warehouse, industrial or office space premises.
Key Commercial Lease Types Explained Gross Lease. Often found in office buildings and retail spaces, gross leases provide a simple, all-inclusive rental arrangement. Net Lease. In net leases, the tenant assumes a more significant share of responsibility for building expenses. Modified Gross Lease. Percentage Lease.
A grocery store is typically considered to be both retail and commercial. It sells directly to consumers (retail) but often operates on a larger scale with bulk purchasing and distribution (commercial).
Key Takeaway differences: A retail lease is used where there is a sale of goods or services, often in a shopping centre (cluster of 5 or more stores). A commercial lease is used for warehouse, industrial or office space premises.
Commercial leases are typically fixed-term agreements, often lasting 12 months or more. A commercial rent agreement is usually a short-term arrangement, often renewing every 30 days, offering more flexibility but less long-term security.
