Frequently Asked Questions
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Commercial Leasing FAQs
Below are some frequently asked questions concerning commercial lease provisions.
To lease a property through IMPACTR you need to follow the following steps:
Apart from various facilities ImpactR provides
Verified properties: All properties on our platform are personally vetted by our team so that you get top quality deals.
Dedicated account managers: Our team will handhold you all the way from short-listing properties to registration of lease and possession of the property.
ImapctR platform is a one-stop solution for all your needs: We understand that getting a space is not the end, we also provide architectural and interior designing services
Yes, we do provide legal and other services related to documentations and NOC from different departments.
Yes, land leasing is having lot of potential. You can lease your land through ImpactR platform to various private companies on good rates.
A lease is a contract outlining the terms under which one party agrees to rent property for commercial use owned by another party. It guarantees the lessee, also known as the tenant, use of an asset and guarantees the lessor, the property owner or landlord, regular payments for a specified period in exchange.
What are the different types of commercial leasing?
- Gross: When the landlord pays for all building expenses including property taxes, insurance, and maintenance and tenants typically pay for internet and cable etc. tenants may or may not be responsible for paying janitorial expenses for its space/premises. This is quite often the case in industrial and office leases.
- Modified: Gross Lease can be modified in a variety of ways. When tenant is responsible for paying some of the common area maintenance (CAM). This is often seen in industrial an office leases, and retail lease.
- NNN: Triple (NNN) where the tenant reimburses the landlord for its share of all the building operating expenses including property taxes and insurance. It is seen in long-term leasing where in tenant pay back to landlord on monthly, quarterly, half-yearly, yearly basis. It is predominately seen in retail leases.
- Base year: Tenant reimburses (pays back) its shares of the building expenses above the established base year of the Lease.
- NN: Double NN lease typically means that the tenant reimburses all building expenses except for roof and structure. However, some landlords interpret it as meaning that the tenant reimburses everything except property taxes.
In most of the cases lease is done on super area. Rentable/Super Area is the area including carpet are plus a “Load Factor” (typically 10-15 %) which includes common areas such as storage, hallways, elevators, etc. where the tenant receives a benefit Useable/Carpet Area is actual space occupied from “interior” wall to wall.
The purpose of “Use Clause” is to describe the business operation of the tenant i.e. what they will be doing inside the space. For example, an area allocated for manufacturing industry sales or other operations are restricted. Similarly, in IT or other zone manufacturing is prohibited. Also, in retail business many brands opens their outlet in commercial notified area.
Use Clause is also important for landlords and tenants for the following reasons:
- Landlord: Dispute arise if tenant change from selling coffee to selling garments and next shop of the Landlord (own or another tenant) is of garments Use clause can also be used by Landlords to restrict how the tenant can use the leased space
- Tenant: Exclusive uses can limit the use of space in order to reduce competition. It prevents the landlord from leasing other spaces to similar use-type tenant Example: Landlord shall not lease to another tenant in the retail centre whose use is Coffee: Starbucks and Costa Coffee Burger: McDonalds and Burger king
A typical office lease is from 3-5 years. However, a restaurant/super market (anchor tenant) may ask for longer term as they have put lot of investment in the space
A move in ready space is always lease faster than semi or unfurnished space and also result in higher base rent. However in some cases companies or restaurant needs unfurnished space as they design the interiors as per their requirement and standards.