Most businesses require expensive equipment to function. The cost of this equipment leads many firms to lease instead of buy, and two major types of long-term lease exist. To make sound business decisions, it’s critical to grasp the relative merits of finance leases vs operating leases. We’ll explain both in the below article. Lease Terminology […]
Finance Leases vs Operating Leases: An Accountant’s Perspective Read More »
A master lease agreement is a contract that allows a tenant (typically an investor, business, or property manager) to lease an entire property and then sublease portions of it to others. This structure is particularly useful where large spaces like such as office buildings, retail properties, and apartment complexes are divided into smaller rentable units.
Master Leases: What They Are and How They Work Read More »
Common Area Maintenance (CAM) charges are a necessary but often misunderstood component of commercial leases. For both landlords and tenants, these fees allow for shared spaces are well-maintained. However, that doesn’t mean it’s a cut and dry type of fee. It’s more often the case that their complexity leads to confusion, unexpected costs, and even
The Ultimate Guide to CAM Charges [CALCULATOR] Read More »
A single-tenant triple net lease (STNL) isn’t just a rental agreement-it’s a commitment. Once you sign, you’re responsible for more than just rent. Property taxes, insurance, and maintenance? All on you. That’s why landlords love these leases. The question is: should you? Before we get ahead of ourselves, let’s define exactly what a single-tenant triple
Your Guide to a Single-Tenant NNN Lease Read More »
What is Office Decommissioning? Moving out of an office isn’t just about packing up desks and rolling out the door. Most landlords expect you to leave the space in a rentable condition, which usually means undoing whatever customizations you made: ripping out cabling, patching up walls, and making the place look like you were never
How Office Decommissioning Works and What it Costs Read More »
Commercial lease structures come in many forms, but one of the more dynamic ones is the percentage lease. A percentage lease ties rent payments directly to a tenant’s revenue. This means that landlords share in a tenant’s financial success, which can align incentives in high-traffic commercial environments. These leases are most commonly found in retail
Percentage Leases: Definition, Negotiation, and Calculation Read More »
It can be easy for business owners to focus on the initial rental rate when signing a lease, but long-term costs can make for unwelcomed surprises down the road. A great example of this is the rent escalation clause. It determines how and when rent will increase over time. Landlords include escalation clauses to offset
Rent Escalation Calculator Read More »
When you hear “lease commencement date,” you might assume it’s just the day your lease starts—but for small-to-medium business owners, it’s so much more. This date can influence everything from when you take possession of a space to how and when your rent kicks in. Overlooking the details here can lead to unexpected expenses, tense
Your Lease Commencement Date: It’s Not Just a Start Date Read More »
Leasing commercial space can feel like trying to read the fine print on a greasy takeout menu—confusing and a little overwhelming. But if you’re a small business owner dreaming of opening your first café, workshop, or boutique, there’s one thing you need to get straight: index leases. Now, these leases aren’t as scary as they
Index Leases: Everything You Need to Know Read More »
Small business owners are guaranteed to face unexpected shifts throughout their tenure. This could include a myriad of scenarios: market changes, financial constraints, or the need to relocate. These challenges can make a long-term lease feel like a heavy anchor, but there are ways to approach termination strategically. The goal is to exit while minimizing
How to Terminate a Commercial Lease Early Without Penalty [TEMPLATE] Read More »
