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Know This Before Leasing Commercial Property

Before leasing any commercial property, it is important to know how much you will be spending. You need to know which responsibilities are yours, how long you will be leasing for, and the terms of your lease agreement. There are specific terms that you must know before leasing, such as USF (usable square feet) and RSF (rentable square feet). Our friends at SVN | Southgate Realty have some tips and information for you to be prepared to lease commercial property.

Leasing a commercial property can be a complex process. From finding the best space to eventually signing a lease after exhaustive negotiation, there is a lot for a tenant to know.

Since a lease is a legally binding, long-term financial commitment (3 to 10+ years depending on the commercial property type), it’s vitally important that tenants educate themselves on its components and terminology. As, no one wants to be stuck in a lease that doesn’t properly serve his or her business or financial needs.

To that end, we have outlined the critical information that every tenant should understand. Also, we ensure it is contained in their lease, before signing on the dotted line. Good luck and happy leasing!

Leasing commercial property? Know this information.

The below list includes the important components that are contained in commercial property leases. Tenants should pay close attention to any and all terms regarding the below.


A lease should contain clear language on the rent cost, including information on any rent escalations (acceptable increases).

In the rent escalation clause, which increases rent on an annual basis, pay particular attention its calculation. It will either be (i) based on a percentage of the Consumer Price Index (CPI), (ii) based on increases in operating expenses and property taxes, or (iii) all of the above.

To avoid higher and higher rent prices…


Posted by: southgaterealtyllc on April 24, 2017