An Overview Of Commercial Rental Agreements In Manhattan
The cost of rent as determined by a rental lease agreement makes up a large percentage of a company’s monthly expenses. Whether they’re renting a retail storefront or an office space, it’s extremely important that commercial tenants understand the different types of leases available to them in Manhattan.
Types Of Leases
There are two main types of leases in Manhattan: gross leases and net leases.
A gross lease, or fully serviced lease, means that the landlord will pay everything except for the monthly rent. That means the landlord is obligated to pay the property taxes, insurance, and maintenance and upkeep. A gross lease is no longer popular in the city and often comes with a higher price per square foot in rent.
In a single net lease, the tenant is responsible for paying property taxes in addition to their own expenses. In a double net lease, which is also rare, the tenant pays the rent, the property taxes, and the insurance premiums. The landlord covers maintenance fees for single and double net leases. In a triple net lease, the tenant pays all costs of occupancy, including repairs and maintenance.
Modified gross leases, wherein the tenant pays their own expenses while the landlord pays the property taxes and insurance premiums, are becoming an increasingly popular option in Manhattan.
Most commercial leases last for a period of five years.
Lack Of Statutory Protections
In New York City, commercial tenants do not have the same statutory protections as residential tenants. The biggest effect this probably has on commercial properties involves the warranty of habitability, meaning tenants often accept retail or office spaces “as is”. The landlord does not have the duty to ensure the space is safe or clean.
John M. Crane, P.C. Will Protect Your Best Interests In Commercial Leases
Having an experienced real estate attorney at your side during a commercial lease negotiation can protect your business’s long-term interests. Unclear or deficient leases often lead to an unnecessary rental agreement dispute and even litigation. Your lawyer can work on your behalf to obtain a fair deal by reviewing the lease terms and assisting in negotiations and the drafting of the agreement. Should you need to settle a dispute through litigation, the concierge legal team at John M. Crane, P.C. has the experience necessary to craft your best defensive strategy.
At John M. Crane, P.C., we handle real estate matters including commercial lease negotiations on behalf of our busy clients in Manhattan. We will ensure that your lease offers you the most flexible terms and brings you peace of mind. We strive to protect your assets by keeping your bottom line as low as possible, as well as looking out for your business’s best interests by avoiding any hidden traps in lease terms.
Throughout your entire lease negotiation, attorney John M. Crane will provide you a personalized concierge level of service to meet all of your business’s needs.
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