Lubbock Commercial Real Estate for Lease
Let our team of professionals find you the right type of Lubbock commercial real estate for lease.
There are three main types of leases. Any Lubbock commercial real estate for lease, every landlord and property is different and the types of leases are general in description. It is important to fully understand the lease that you are signing prior to signing any lease. It is advisable if you have questions to consult an attorney prior to signing a lease. It is a legal document and has financial implications.
Full Service
Full Service leases are primarily found in the office setting. If you sign a full service lease the landlord will be paying the property taxes, property insurance and possibly other services. The variables are utilities, janitorial and maintenance specific issues. The rental rate will be higher because the landlord is paying for these expenses with the monthly rent. Take this into consideration when you are comparing this to other properties with different lease types. I.e. A full service lease at $26.00 per square foot could be a better option than a NNN lease at $19.00 psf, $5.00 NNN expenses, $1.50 psf for utilities and $1.20 for janitorial.
Modified Gross Leases
Modified Gross leases can mean a variety of different things. Basically, the lease is not a full service lease or a NNN leases. It is somewhere in between these two types of leases. Some modified gross leases are the where the landlord will pay the current amount of property taxes and property insurance. The tenant may be responsible for an increases over the lease term in the property taxes and property insurance. If the tenant occupies 25% of the property, they would only be responsible for 25% of the increases in property taxes and property insurance. The tenant may or may not be responsible for maintenance issues, utilities, janitorial etc.
NNN Leases
A NNN leases is where the tenant is financially responsible for property taxes, property insurance and maintenance. The landlord can have the tenant pay for these annually directly to the taxing authority, insurance company and maintenance contractors. The landlord also has the choice to collect the estimated costs monthly and pay the expenses his or herself and reconcile the expenses at the end of the year. The landlord will have to keep excellent records of the actual expenses as verification is recommended
