New York Commercial Lease Agreement – PDF – Word
The New York commercial lease agreement allows the renting of retail, industrial, or office space between a property manager/owner and an individual or entity. This type of arrangement is usually three (3) to five (5) years long with the tenant typically having the option to renew for more years at a predetermined rental rate. If the landlord is accepting a new business, they should require a rental application and a personal guarantee from the lessee to make ensure they are covered in the case of the proprietor being unable to pay in the future. The landlord will usually have money invested for the tenant to fit-up the space into a “vanilla shell” for move-in.
There are three (3) ways to structure a commercial lease;
Triple Net (NNN) – This is the arrangement where a tenant pays the rental amount every month as well as the utilities (electricity, water, etc.), taxes, insurance, common area maintenance (CAM’s), and all related expenses with the property.
Modified Gross – This is where the tenant will pay for a fixed rent amount and a portion of the expenses related to the property.
Gross – This is an arrangement where the tenant will only pay a fixed amount every month, and the landlord will pay all the expenses and take care of the common area maintenance (CAM’s) associated with the space.
Business Entity Database Search – This search portal enables any landlord to research prospective business tenants prior to drafting a lease agreement.