Commercial Insights
Key Terms to Understand Before Negotiating a Commercial Lease
Base rent is only one piece. Escalations, expenses, improvements, and options often matter just as much.
By Pezhman Dashti ·
Lease structure
Gross, modified gross, and triple-net leases allocate operating expenses differently. Confirm exactly which costs you pay and whether there are caps on controllable expenses.
Escalations and options
Annual increases, renewal options, and expansion or contraction rights determine your long-term costs and flexibility.
Improvements and use
Tenant improvement allowances, who manages construction, permitted use language, and signage rights should all be agreed before signing a letter of intent.