Help with Commercial Lease Questions!

[Mike Lynch]

Hi,

We just rehabbed our first commercial property that we purchased this past summer.  ( New paint, flooring, plumbing, ) .. It has 2 very nice office units which are 1000 sq. ft. each..... Both units are empty. A Nation Wide Insurance Company wants to lease one of the units. They will have a site inspector taking photos this coming week...... Now, I am in a bit of a panic to come up with a proper lease. ..... After doing my own survey of the area, the going rate is pretty much $1.00 per foot, per month, so a 1000 sq. ft. office is $1000.00 per month.

The building is in Brunswick Co. NC. .... I need to install a rent rate increase into the lease agreement...... How much percentage should I add per year? ( 3% --- 5% / other?

How many years should I lease or not lease / timewise? ..... I mean, what if they say 5 years or 10 years?

I am thinking about doing a Modified Gross Lease.

( Tenant pays: ..  Rent, Utilities, Janitorial, Interior Maintenance )

( Landlord Pays: ..  Property Taxes, Insurance, Common Area Maintenance )

If I am wrong about anything, please let me know, as I am brand new and wet behind the ears....... This Nation Wide Company, I'm sure, is used to doing a lot of leases every year..... They are pros, and I am not...... I am worried that they may get the best of us, if I am not careful.

Any advise to help me lease to a professional that knows all of the tricks would be great!

Thanks! :)

Mike