Differentiating Commercial Lease Terms

Gross Lease; Net Lease; Double Net; Triple Net.  What do these terms mean?  What is the appropriate Commercial Lease for your circumstances?

It is not simply a case of what’s the best form of lease for the landlord or for the tenant.  Each arrangement, or a blended arrangement, has advantages and disadvantages for either party depending on the premises, term and business involved.  The best arrangement for our clients, landlord or tenant, is not always an obvious choice.  A Gross Lease may be better for a Landlord for a short-term, partial building arrangement.  A Triple-Net Lease may be better for a Tenant who wants to control expenses and budget the costs of capital improvements.

While it may seem as though there is lots of ‘boilerplate’ language in the form, a commercial lease is a complex contractual arrangement subject to dedicated negotiation and drafting specific to each scenario.  While there are certain terms that are necessary to every commercial tenancy, It is not a ‘one size fits all’ situation; it requires careful consideration to assist the client toward the best set up for their business and leasing arrangements.

We would be pleased to assist you with our experienced advice in respect to your next commercial lease.  You should contact Simon Valleau or Andrew Chudnovsky to get started.

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