RENTS - Understanding Commercial Leases - Part 6

This is Part 6 of a multi-part series on Understanding Commercial Leases

RENTS

TYPES

• Base Rent
• Additional Rent (Reimbursements for taxes, insurance, maintenance, etc.)
• Percentage Rent
• “Holding Over” Rent

RATES

• Basis for calculating rate
  • Square Footage Rate
  • Rate for the space

• Rental Increases
• Percentage Rent Rates & Breakpoints
• Option Period Rates
• Free Rents

LANDLORD'S INTEREST

• Getting as much rent as possible.
• Getting reimbursed for taxes, insurance & maintenance charges.
• Making sure tenants with percentage rent clauses properly report all sales and do not run them out of neighboring locations, so as to minimize landlord’s percentage payments.

TENANT'S INTEREST

• Paying as little rent as possible.
• Putting a Cap on payments for taxes, insurance & maintenance reimbursements.
• Not paying percentage rent, or setting breakpoints so high that payment is unlikely