Frequently Asked Questions

This is the most common type of commercial lease.  NNN stands for net, net, net.   In addition to the regular rent payment, the tenant is also responsible to pay their proportionate share of the property taxes, property insurance and common area maintenance (CAM).  NNN fees are estimated annually and divided among all the tenants based on their square footage. The NNN charges are billed on a monthly basis along with the regular rent.  At the end of the year the NNN expenses will be reconciled and any overages will be billed to the tenant.  If there is an overpayment, a credit will be applied to the tenant's account or passed through to the next year's estimate.

The lease term is usually negotiable, however, a term of 3 to 5 years is the usual term of a lease.  In addition to the lease term the tenant is usually given an "option" to renew the lease for the same term at the end of the initial  lease period. The option is a gaurantee by the landlord that you will be able to renew the lease, provided that the tenant's account is in good standing.

Tenant's are responsible for all maintenance and repairs within their unit.  This includes all window fronts, HVAC, electrical, plumbing and all things inside the unit that is not shared with other tenants.  The landlord is responsible for maintaining and repairing all common areas.  This includes the parking lot, roof, landscape, walkways and all the infrastructure that is shared among the tenants. The cost to maintain and repair the common area is  a part of the NNN fees.

The security deposit depends on several factors.  This may include credit score, term of the lease, size of the unit, type of business and other factors.  The minimum amount of security deposit is typically 2 months rent.

There are typically costs associated with starting a lease.  These costs include security deposits, credit check fees, administrative fees, and signing fees.  The amount of the fees varies depending on several factors.  The leasing specialist will be able to give you the amount.

The tenant is required to obtain property and liability insurance for their business and the unit.  This protects the tenant as well as the landlord in the event of a claim.  The landlord requires that they be named on the policy as an "additional insured" and will require a copy of the certificate of insurance prior to the opening of operation.

A corporate or LLC entity can be named on the lease, however, an individual(s) must guarantee the lease.  We will require a Certificate of Good Standing  from the Secretary of State stating that the entity is active and in good standing.  In addition we will require corporate Articles of Incorporation or the  LLC operating agreement.  In the event there is a breach of the lease, both the entity and the individual(s) will be legally responsible for any damages.

Rent is normally due by the 5th of each month.  In the event rent is not paid by the 5th, a 10% late fee is applied to the balance.  

We always encourage our tenants to promptly pay their rent on time. If the tenant is having difficulty paying rent, we encourage the tenant to reach out  to the account manager and learn of available options. Do not wait until we issue legal notices before contacting the account manager.  Once notices are issued the tenant will be liable for all the legal costs incurred by the landlord associated with the eviction process.

In the event rent is not paid, we are legally obligated to start the eviction process immediately. Depending on the state in which the property is located, legal notices will be issued to the tenant and a court date will be scheduled to have the tenant legally evicted.  Persistent late rent payment or evictions will be reported to the credit agencies and will negatively affect a tenant's credit ratting.

Tenant Improvement (TI) is all the construction cost that goes into building out the unit so that the tenant can operate the business.  This can include walls, countertops, displays, lighting, flooring, painting, trade fixtures, etc.  The tenant is usually responsible for all the TI cost.  In some instances the landlord may issue credits that can be applied to the TI cost.

Depending on type the type of business, size of the unit and estimated TI build out, the landlord may sometimes offer some free rent.

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