Leasing
How leasing works
Commercial leases carry more choices than most businesses expect. Here's the path from first call to move-in, and the terms worth understanding on the way.
The process
Tell us the requirement
Size, location, timing, budget, and what the space has to do. A short call or the inquiry form is enough to start.
Shortlist and tour
We present the spaces that fit, with the specifications and costs side by side, and tour them with you or your broker.
Letter of intent
The business terms in plain language: rent, term, escalations, allowance, free rent, options and delivery date. Non-binding, so it can be negotiated.
Credit review
We review the tenant's financial information to set security terms. Information you share is handled confidentially.
Lease
The lease document reflects the agreed letter of intent. Your attorney reviews it; we work through comments promptly.
Build-out and move-in
Plans, permits and construction, with a single point of contact through delivery, keys and the first day of operations.
Lease types
Who pays the property's expenses is the biggest structural difference between leases. Compare offers on total occupancy cost, not base rent alone.
| Structure | How it works |
|---|---|
| Triple net (NNN) | The tenant pays base rent plus its share of property taxes, building insurance and common-area maintenance. Common for industrial, retail and single-tenant buildings. |
| Modified gross | Base rent covers some operating expenses; the tenant pays others, such as its own utilities and janitorial. The split is set out in the lease. |
| Full service gross | One rent covers the space and the building's operating expenses at a base year; the tenant pays its share of increases above that year. Common for multi-tenant office. |
| Percentage rent | Used in retail: base rent plus a percentage of gross sales above an agreed breakpoint. |
| Absolute net | The tenant takes on nearly all property costs, including structural repairs. Usually long-term single-tenant leases and build-to-suits. |
What a lease costs
- Base rent
- Quoted per rentable square foot per year (or per month in some markets), with scheduled escalations.
- Operating expenses
- Taxes, insurance and common-area maintenance under a net lease, or increases over a base year under a gross lease.
- Utilities and services
- Electricity, data, janitorial and after-hours HVAC, depending on the lease and the building.
- Build-out above the allowance
- Construction costs beyond the tenant improvement allowance, plus furniture, cabling and equipment.
- Security
- A security deposit or letter of credit, sized to the tenant's credit and the landlord's investment in the space.
- Moving and insurance
- Relocation, the tenant's own liability and property insurance, and any permits for the tenant's operation.
What to prepare
- A short description of the business and how it will use the space
- Recent financial statements or tax returns (two to three years where available)
- Entity details: legal name, state of formation and signatory
- Requirements: size, location, timing, budget and must-have specifications
- For newer businesses: a business plan and the guarantor's information, if one is offered
Financial information is used only to evaluate the lease and is kept confidential.
Terms worth negotiating
Beyond rent: the tenant improvement allowance, free-rent periods, renewal and expansion options, caps on controllable expenses, assignment and subletting rights, and the delivery condition of the space.
Tell us what your business needs
Share the requirement and our leasing team will follow up with spaces that fit.