Commercial Lease Types


Commercial property for lease is far and away the most active sector of the commercial real estate market as most commercial property tenants chose the commercial lease rather than to purchase a commercial office building. There are more than a few ways commercial property for lease is offered in the United States.

The Full Service commercial real estate lease is predominately used for commercial office space for lease in “multi tenant” office buildings. This Full Service commercial lease almost always includes the base rental rate, all real estate taxes, insurance, maintenance, cleaning, and utilities and is most prevalent in mid to high rise office buildings.

The Triple-Net lease (NNN) is typically a structure you will see for a single tenant office, R&D, or industrial building. However, the NNN lease is sometimes used elsewhere under other commercial lease scenarios. Landlords often prefer the NNN lease because the tenant is responsible for all aspects of the real estate except for (in most cases) the building foundation. It is difficult to use a NNN lease in a multi tenant building with many tenants sharing electrical and mechanical systems. Yet, it can be done and on occasion you will see Commercial property for lease under the NNN lease structure with all tenants using house power and dividing up the cost no matter who uses what.

The Gross Lease is a hybrid commercial lease where the commercial real estate tenant pays the base rent and some of the other building operating expenses. For example, the tenant will of course pay the base rent and may be obligated to pay electrical and cleaning while the landlord pays the property taxes, maintenance, and other utilities like garbage and water. There are many variations of the Gross Lease wherever you find Commercial property for lease.

Commercial property for lease is generally defined by the quality of the commercial property and ranked accordingly.

Class A commercial office space for lease is the highest quality commercial space for rent. Commercial office space for lease of this caliber provides office space for lease by suite and houses many commercial real estate tenants.

Class B commercial space for lease is the second highest quality of buildings available in the commercial lease market. Like Class A office listings, these commercial buildings for lease also offer Commercial property for lease suite by suite.

Class C buildings for lease are generally defined by suboptimal Commercial property for lease conditions. Rankings are highly subjective and each real estate professional will have an opinion on how to classify in particular commercial office space for lease.

Commercial property for lease is generally leased by the year, but the market offers other shorter term options. Some commercial leases will rent month to month within executive office suites. Office space for lease in executive suite buildings usually offer teaming rooms or one to three private office suites. Executive office suites are cost effective up to about 10 people where it then becomes more feasible to go out and find a Commercial property for lease in another building.

Commercial property for lease is a highly dynamic market where many office listings come and go quickly. The same is true for retail space. Industrial space tends to move slower. BuildingSearch.com tracks all available buildings for lease or sale. We hope that you visit our search engine page and begin your customized search for Commercial property for lease opportunities.

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