A commercial lease describes an agreement between a landlord and a business enterprise to rent up property for a business.It clearly explains the conditions and guidelines regarding rental property.

Commercial or corporate leasing is rapidly growing due to peoples preference to leasing property rather than buying.

TYPES OF COMMERCIAL LEASES

There are several types of commercial leases which are discussed below.

1.Gross Lease: This is a commercial lease where the lessee is required to pay for the rent charges alone.In this lease contract, the landlord usually caters for all other costs relating to the rental property.

2.Triple Net Lease: In this commercial lease contract the tenant or lessee usually pays the base rent plus notable share of operational expenses. Such expenses include taxes and insurance costs.

3.Modified Net Lease: For this commercial lease, the tenant and the landlord usually share in paying the maintenance costs. The landlord, however, pays for tax and insurance costs while the tenant pays the rent charges and other maintenance operational expenses.

4.Percentage Lease: Ths is a commercial lease where the lessee or tenant pays the rent charges and a percentage share of any revenue that is earned in the course of doing business on the rental property.

PROCEDURE OF OBTAINING A COMMERCIAL OR CORPORATE LEASE

There are certain steps or guidelines to how one executes a commercial or corporate lease which are;

1.Conduct a business review
The tenant or business owner should carry out a comprehensive business review which is very important for the purposes of figuring out the business real estate needs and setting a budget for the lease.

2.Seeking the opinion of other parties
The tenant should seek advice from parties such as real estate advisors and partners, bankers and real estate brokers. Real estate advisors can help the tenant get ideas on the lease contracts.The banker is the financial advisor for the tenant while the real estate broker helps the tenant in choosing the best location for renting property.

3.Scrutinize options
A tenant should look through other options with a flexible mind considering the market target of the business and putting into consideration the leasing budget they have set.

4.Negotiating the lease
Upon finding the right commercial landlord and discussing the terms of the lease, the tenant has a right to negotiate the contract to benefit their business.This includes discussing issues such as leaseholds improvement which may not have been initially stated in the contract.Negotiating a lease also helps the tenant to understand the lease costs.

5.Obtain financing
The final step is to get the means of financing the lease. The tenant should understand the various ways of financing the lease which include obtaining commercial mortgage loans.

THINKING SPACES IS THE CORPORATE LEASING COMPANIES IN INDIA

Thinking Spaces advises their clients on the best property types that match their perspective needs, the best location for leasing and also source the available property that matches the clients’ criteria.

BENEFITS OF COMMERCIAL LEASING

Commercial leasing has several financial benefits and other advantages.Financial benefits include:

1.No capital gains- Since the tenant does not own the property they do not pay for capital gains.

2.Commercial leasing help tenants to avoid financial setbacks such as depreciation or decrease in value of the property.

3. With commercial leasing, clients do not have upfront costs since they do not make down payments.They only pay a security deposit and initial rent prior to moving into the property.

Other benefits include;
1.Flexibility as the client can move from the property when they deem it necessary to do so.

2.Long-term commercial leases provide clients with more bargaining power.

3.Commercial leasing enables clients to get property in the right location and one that meets their business needs.