Top Tips When Leasing Commercial Real Estate

There are various considerations you need to make when searching for a commercial real estate property to rent for a retail business. Remember that some of the property features directly influence your business by determining factors such as customer flow and the monthly rent. Explore the aspects described below to avoid inconveniences during your occupancy contract. 

Lease Structure

The terms and conditions for a commercial real estate lease agreement will vary significantly. However, knowing the common lease structures available can save you surprise charges when you are deep in your tenancy agreement.

Full-Service Gross

In this type of commercial real estate lease agreement, as the tenant, you pay just the base rent, and the landlord takes care of other structural and operational costs. Such an agreement sounds ideal for the tenant as you only cater to one known expense. However, on the downside, the landlord could inflate the base rent as a mitigation strategy to help them overcome the other costs.

Partial Gross

This commercial real estate lease agreement requires the tenant to pay for the base rent and other additional operational costs. For instance, if you rent a space for a cosmetic shop, you pay for the electricity bill in addition to your monthly rent. You might not pay for the building's insurance or tax, but it gives you a sense of responsibility. 

Triple Net  

A triple net contract entails the tenant paying for the base rent in addition to three other expenses. These include the property's tax, insurance, and general maintenance costs. Of the three commercial real estate lease structures, it is arguably the most common. It gives the tenant control over the retail, commercial property you lease. For instance, if a water faucet stops functioning, you will have to take charge and replace it instead of asking your landlord to replace it, which may take some additional planning. 


The importance of the location aspect for commercial real estate properties is elemental in its overall success. The property's site directly influences the cost of monthly base rent and the business volume in terms of customer inflow. At the very least, ensure that the location of the commercial real estate property you rent is:

  • Within or close to a populated public space to generate customer volume; The rent could be slightly higher, but it might pay off down the road
  • Close to social amenities such as parking spaces for the convenience of your customers.
  • Natural lighting, not only for aesthetics but for your wellbeing. For example, you do not want to spend all your working hours in a dark cubicle that depends on fluorescent bulbs for lighting. 
  • Secure. Again, the rent might be high, but your peace of mind and the security of your business is paramount.

Retail commercial real estate spaces provide retail tenants with endless opportunities to establish and expand their businesses. However, a clear understanding of the conditions for lease and the location of the commercial retail property are essential in the search process.