When comparing commercial real estate lease costs in the Boston Metro, it is important to look at the type of lease being offered as well as the square-footage cost itself. If your business will be located within an office building, industrial park, shopping center or customized free-standing building, you are likely to deal with a triple-net lease.
Triple-net leases are popular with real estate investors as it reduces the variables involved in an income-producing commercial property. For business owners, however, triple-net leases mean absorbing a world of responsibility. Triple-net leases generally require the tenant to pay for the following expenses, in addition to rent and utilities:
- Real estate property taxes
- Insurance premium on the building
- Maintenance costs for the building
- Maintenance costs for parking areas
Having a triple-net lease means that the tenant must prepare for a potential rise in these expenses, even if the rent itself is fixed for a period of time. In the event that multiple tenants exist in the building, the costs are divided up between them. Tenants leasing smaller square footage in such situations typically pay a smaller share of these expenses, but this should not be assumed blindly.
As an alternative, a gross lease can be offered, which would charge the tenant a flat rate each month. The landlord would factor in all the same expenses as the triple-net lease. If any of those expenses increased during the term of the gross lease, the landlord would be responsible for covering the difference. Because of this, gross lease rates can be higher than triple-net lease rates.
Lease costs, lease types and ancillary expenses can vary greatly from one building and location to another. The guidance of an experienced tenant representative can help you find the best solution for your needs!
When you are ready to begin, relocate or expand your business, team up with the Jay Nuss Realty Group, LLC! Whether you are thinking of buying, leasing, or investing in Boston Metro commercial real estate, we can help you find the ideal property.
Contact us today for expert guidance!