A Commercial Lease Agreement is used by owners of commercial property to rent their space to tenants looking to run a business. There are many different ways to go about drafting a lease for commercial property. Depending on how the negotiation process goes, the lease will either be a gross lease (advantage landlord) or a net lease (advantage lessee). This form gives you the flexibility to to choose either or.
There are 3 types of net leases that are commonly used.
- Single – Makes the lessee responsible for paying property taxes.
- Double – The lessee is responsible for property taxes and and the insurance of the property.
- Triple – The most common of the 3 types of net leases, the tenant is responsible for all cost associated with the property, including the property taxes, building insurance, and maintenance.
Before a commercial lease like this is signed, the lessee will normally submit to the landlord a Letter of Intent, which is a preliminary agreement that gives detail to the landlord about the tenants intentions.
For references related to the state laws regarding commercial matters, refer to Louisiana R.S. 10:9-101