Commercial Lease Vs. Residential Lease--Differences?
As a landlord...How does your commercial lease vary compared to your residential leases?

Ie. added clauses for commercial, NNN clauses, etc.
[{"id": "dosonk2", "text": "about 30 pages of shit +/-", "replies": [{"id": "dosvjgb", "text": "Ahh the eBay comment. \n\n2/5 helpful. A++ Seller,Though! ", "replies": [{"id": "doswbec", "text": "hire a lawyer if you have to ask (you should have one anyways).  if you dont know what terms will be in the lease hire a broker to negotiate it.  \n\nyes all the things you mention and tons more.  maint will be different, use provisions, maybe even hours of operation etc.  these are highlt custom documents not form docs like a res lease.  how defaults are handled can be pages long on a simple lease.  \n\nyou may as well be posting to a indy car forum like 'hey how does a indy car vary from my honda civic?'.  its so broad its not worth answering.  if you have to ask it here you are about to make a lot of mistakes.  pay people already know how to work on indy cars to do this for you.", "replies": [{"id": "dosyp5u", "text": "I have a lawyer. Closing on my first commercial building. people learn from the internet, not just me. Obviously a broad ass question but always interested in what opinion/advice people have to say.", "replies": [{"id": "dot0vdy", "text": "You should probably start with google and then narrow down your topic / questions to shit you don\u2019t understand. The differences are just too large. ", "replies": [], "depth": 5}, {"id": "dpijj9k", "text": "It\u2019s beyond just a broad ass question if you\u2019re about to close on your first commercial property, because it indicates you likely don\u2019t know what you\u2019re getting yourself into.  The two best things you can do are to hire a reputable commercial broker and a qualified real estate attorney.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "doss9x9", "text": "it could potentially vary significantly", "replies": [], "depth": 1}, {"id": "dossckm", "text": "I cant even list all the issue the two leases are so incredibly different.  Its like comparing a lion to a house cat, they are both felines but other than that there is not much cross over.", "replies": [], "depth": 1}, {"id": "dosvpyt", "text": "I concur with the above \"buncha stuff\" comments, but I will start with Tenant Improvements - a huge $&amp;amp; potentially compared to a turnover of an apartment. E.g. Hipster Coffee Roasters wants $50psf in TI before they'll sign their $35psf NN lease. ", "replies": [{"id": "dosvtw3", "text": "I mean, i'd probably grab a coffee there over Starbucks.", "replies": [{"id": "dosxrca", "text": "If you can afford it after the improvements. ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dosz03b", "text": "What state are you in? Texas Association of Realtors has promulgated forms for each you could review. ", "replies": [], "depth": 1}, {"id": "dot6zjp", "text": "First and foremost NNN or Triple Net isn't a lease clause. It's a type of lease. Lease types fall under a few categories:\n\n- Gross Lease (Full service lease) is typical of what you would find in a traditional residential lease agreement. Gross leases in commercial properties create more work for the owner or me (the property manager) because I have to estimate and project the expenses and calculate them into the monthly base rent before either party even signs into the agreement. Which will include everything from CAM, insurance, taxes, and any budget line items that could potentially be pass through to you. It's a lot more complicated than that once you get into long term leases and inflation and CPI index adjustments for inflation. It can be a proverbial clusterfuck. Technically a gross lease means the tenant pays only base rent and the landlord pays all expenses but trust me your base rent in a gross lease will reflect some if not most of those expenses.\n\n- Modified Gross (Semi-gross leases) is just like it sounds it's a modified gross lease.\n\nThen there's: \n\n- Single Net: Tenant is obligated to pay base rent, operating expenses incurred by landlord, and his share of the property taxes\n\n- Double Net: Tenant is obligated to pay base rent, operating expenses incurred by landlord, his share of the property taxes and insurance\n\n- Triple Net: Tenant is obligated to pay for everything including base rent. This will include operating expenses of the property, taxes, insurance, repairs, site maintenance, capital expenditures, operating expenses including costs to meet codes, routine maintenance, etc.\n\n- Absolute net leases: Tenant is obligated to pay even more. You basically own the building without owning it. This is like having a mortgage on a home that forecloses when the lease term ends. You pay for everything including the mortgage (base rent) and when the lease term ends it goes right back to the owner.\n\n- Ground leases: This is where you get your McDonalds and your IHOPS. These are ground leases where the tenant leases the ground and is responsible for everything including construction of the property. These lease terms are long term 20 years+ and after the term ends the tenants are usually given an option to renew or the owner takes back EVERYTHING. Including whatever was constructed, buildings, and improvements that were made.\n\nThose are the lease types.", "replies": [{"id": "dot7cmp", "text": "Now getting into commercial lease clauses I'm not going to go into detail because as much as I like helping other, my time is important to me, and google is your friend.\n\nBefore I get into it let me just state that for the record, when it comes to lease agreements between parties, \"In a court of law, the property manager, facilities manager, or owner (if acting as the landlord to the lease agreement) will be and are considered the \"knowledgeable parties\" and the courts will hold you to a higher standard of care when dealing with comparatively unsophisticated tenants.\" That means if you intend to sign into a lease agreement with a tenant, and you'll be acting as landlord, ignorance will not be an excuse if you fuck up. Now if you're the tenant, then this will be the landlords problem, so you won't have shit to worry about. Anyways.\n\nClauses (Common clauses you'll see):\n\n- Parties to the contract\n\n- commencement date of term of lease\n\n- delay of possession\n\n- rent amount\n\n- requirements of payment\n\n- late charges\n\n- additional rent\n\n- security deposit\n\n- customary and additional services\n\n- subleasing and excess rent\n\n- continuous operation\n\n- holdover\n\n- option to renew\n\nClauses (Other clauses that may/may not come up):\n\n- demolition\n\n- property taxes payable by renant\n\n- operating costs\n\n- control of property by landlord\n\n- relocation\n\n- roof rights\n\n- charges for utilities\n\n- tenant not to overload facilities\n\n- no liability\n\n- HVAC system maintenance\n\n- tenants responsibilities\n\n- HVAC replacement\n\n- nuisance and waste\n\n- observance of law\n\n- compliance with environmental laws\n\n- tenant's environmental indemnity\n\n- environmental site assessment\n\n- tenant's insurance\n\n- loss or damage\n\n- indemnification of the landlord\n\n- damage and destruction of the premises\n\n- maintenance and repairs by tenants\n\n- landlords approval for alterations\n\n- maintenance and repairs by landlord\n\n- tenant not to overload floors\n\n- removal of leasehold improvements and restoration of premises\n\n- trade fixtures\n\n- surrender of premises \n\n- notice of defects\n\n- right to carry out work\n\n- right to show\n\n- liens\n\n- option to terminate\n\n- corporate ownership \n\n- assignment or transfer by the landlord\n\n- event of default\n\n- waiver or exemption from distress\n", "replies": [{"id": "dou4ps9", "text": "Nice work.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dothcow", "text": "Commercial leases favor the landlord, residential favor the tenant.  And 30+ pages of shit like the top guy said", "replies": [], "depth": 1}]