Congratulations! You have just found an office space that meets your needs! But did you know which commercial leases you will sign? In order to fully understand the subject, what would you say if we flew over the most frequently signed commercial leases in Quebec? Let’s go.
Gross Rent Commercial leases: the first type of lease
When signing or renewing an office lease, there are several types of leases available to you. Among these, there are first the gross rent leases. These leases are somewhat the equivalent of an all-inclusive plan. Thus, this agreement only obliges the tenant to pay a fixed monthly amount. Under this lease, the landlord agrees to assume all incidental costs related to the use of the leased property, even if these increase. Because of the risk of fluctuating expenses, this type of lease is not widely used by owners.
Net Rent leases
The net lease, also called triple net (net net net); this lease does not transfer part, but all of the building’s operating costs to the tenants. At that time, the people who rent the space not only pay the charges included in the lease, but they also have to pay all of the building’s expenses, in proportion to the space occupied by each of them. On the other hand, the person who signs a net lease can recover all of the operating expenses, including administration costs, provided that these costs are described in the lease. If you are considering signing this type of agreement, be sure to agree on how often these expenses will be paid to avoid surprises.
To sign the commercial lease that suits you
In Quebec, there are several types of commercial leases. When choosing his own, a tenant must carefully assess the advantages and constraints of each of them at the risk of having to pay costs of which he was not fully aware at the start. After all, rent is one of the most important operating expenses. It is better to make an informed choice to ensure the prosperity of your business.
Are you planning to rent office space soon and would you like to partner with a trusted partner to find your ideal location? Panorama offers unparalleled service and expertise, contact us!