A North Carolina Commercial Lease Agreement covers a commercial entity renting a property for business or industrial reasons. Depending on the zoning laws and restrictions, a business may lease commercial property for industrial, office, retail, multifamily, and other commercial purposes.
For a commercial lease to be valid in the state of North Carolina, there are four essential elements that must be in tact. The first element is the identity of the parties involved (landlord and tenant) and they must both have the capacity to be involved in a lease. The second element is for there to be a detailed description of the property and all that it entails. The third element is the term including extensions, renewals, options to purchase if any. Lastly, the fourth element is the consideration paid by the tenant.
Rent; The duty of the tenant is to pay rent. As an exchange of rent, the tenant obtains the temporary status of an owner for the term of the lease. During this time, the tenant has the right to use the property for any use under lawful and zoning laws.
Lease Type; It’s very important to detail the lease type in a commercial lease. Typically commercial leases are of three types; Net, Gross, and Modified Gross. Net leases tend to favor the owner due to the tenant taking more responsibility of the expenses that come with the property.A gross lease favors the tenant due to the landlord taking the burden of the expenses because the rent is “all-inclusive”.