1400 Gables Ct #103 Plano, TX 75075
5601 Bridge Street, #300, Ft. Worth, TX 76112

Dallas Business Lease Attorney Gives a Whirlwind Tour of Industrial Leases

Dallas business lease lawyer, Richard “Ric” Armstrong, talks about some of the more common types of commercial/industrial leases and the terms of each.

Industrial leases can be far more complex than standard rental leases, with specific terms varying according to the type of facility, type of business and preferences of the landlord. If you’re planning to rent office, retail or warehouse space, here are a few of the more common lease agreements you’re likely to see.

Gross lease

Also known as a full-service lease, this agreement is all-inclusive, meaning the landlord covers most or all of the expenses associated with the space—for example, utilities, property taxes, insurance and maintenance. Frequently preferred for office and warehouse space, this lease helps simplify accounting for the tenant and landlord, but predictably, it usually translates to higher rents to offset the costs.

Net lease

Under net lease terms, the tenant pays a base rent plus some or all of the usual costs of occupancy, which may include property taxes, insurance, utilities and general maintenance. Net leases usually fall into three sub-categories:

• Single net—tenant pays the property taxes of the occupied building space.
• Double net—tenant pays taxes and insurance on the occupied space.
Triple net—tenant pays taxes, insurance and maintenance for the space.

Net leases may be used for all types of businesses, but triple net leases are frequently used for larger retail spaces. Net leases usually favor the landlord, so consult with an attorney before signing one.

Percentage lease

An alternative to net leases, a percentage lease awards the landlord a percentage of monthly sales in addition to the base rent. This lease is most common for retail businesses.

Given the complexities of industrial leases, you should always consult an attorney before signing one to ensure your rights are protected. To speak with a Dallas business lease attorney, call Armstrong The Law Firm, P.C., today at 972-424-L-A-W-S (5297).

www.planobusinesslawyers.com

Richard L. Armstrong, Principal

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Armstrong The Law Firm, P.C.
Plano Location
1400 Gables Ct #103
Plano, TX 75075

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5601 Bridge Street, Ste. 300
Ft. Worth, Texas 76112

Phone: (972) 424-5297