The Indiana commercial lease agreement is a real estate contract for tenants seeking to occupy space for running a business in office, retail or industrial space. It is up to the landlord, but usually they will ask for the tenant’s specifications in order to ‘fit-up’ the space. Due to the upfront costs and longevity of commercial leases, usually anywhere from three (3) to ten (10) years, the landlord will ask for a vigorous credit check that may even involve viewing tax returns and yearly income.
If the credit check and entity status, from searching the Secretary of State, come back in good standing, the landlord should move straight to writing a lease agreement. If not, the landlord will have to decide whether a string Security Deposit along with having the principal of the entity sign a personal guaranty is sufficient.
Commercial Lease Types
There are two (2) basic ways of writing a commercial lease;
- Gross – The tenant pays for only a specified amount of money per month to the landlord.
- Triple Net (NNN) – The tenant not only pays a specified amount to the landlord, but also their portion of the property’s taxes, insurance, and common area maintenance (CAM’s).
Due to the financial value of the contract it is always advised to authorize this form in from of a notary public.