subject: Miami Commercial Real Estate Common Lease Terms To Remember [print this page] 1. Base Rent1. Base Rent
Leasing is synonymous to renting, and the minimum amount you need to pay for your Miami commercial real estate monthly is called the base rent. This term youll mostly likely encounter when negotiating for a retail space within other commercial spaces, including mall, stores and others.
2. Percentage Rent
Another Miami commercial real estate lease term you must be aware of is percentage rent, which is typically based on your business monthly sales volumes. Like base rent, youll encounter percentage leases in retail spaces. The percentage rent, in addition, is commonly only collected when a preset volume of sales is achieved; it is a contingency-based payment. If, for instance, you are required by the lease to pay 3% percentage rent for sales exceeding $5,000 but only managed to come up with $3,000, then you dont have to pay the percentage rent.
3. Double Net Lease
This is a type of lease where you, the tenant or lessee, is obligated to pay all or part of the insurance and taxes related to the use of the commercial property. These extra fees are commonly included in the monthly rental payments.
4. Triple Net Lease
Also known as NNN, this lease obligates you, the tenant, to pay for all or part of the propertys maintenance, on top of the taxes and insurance.
5. Net Lease
In a net lease, you are required to pay the usage fee and either part or all extra fees or Usual Costs. These expenses are typically paid by the landlord and included common operational costs, maintenance and others.
6. Fully Serviced Lease
In this type of lease, the monthly payment will include service fees, such as trash collection, janitorial fees, water and sewer expenses, utilities and others.
7. Load Factor
Before signing your Miami commercial real estate lease, you must know about the load factor, which is the process of calculating your monthly rental costs. Furthermore, the load factor will mostly encompass the percentage of common area expenses to the monthly rental rate.
