Michael Kostiuk Homes
A Summary of Different Lease Categories.
The following is an explanation from RECO textbook The Commercial Real Estate Transaction:
Buildings are classified as either Class A, Class B or class C,. Some expand this three-part system into further subsets, such as triple A (AAA) or double A (AA). However, caution is advised as no definitive or universal criteria exists to precisely classify buildings and subjective interpretation is a well-acknowledged reality.
Commercial Real Estate Services
With my background in International Trade, Business and Geography I can help you locate Business, Commercial and Industrial locations in Ontario.
Many Commercial Real Estate transaction involve leases. The following is a summary of the most common types of lease agreements from Canada Business Ontario:
Choosing a lease
Commercial rents are generally measured by the cost per square foot of the space. Many landlords charge tenants separately for heat and electricity. There are at least five common ways to calculate rent, including:
Gross leases are the most common standard for office space, and require you to pay a flat monthly amount. The landlord is responsible for all the expenses of operating the building, including taxes, insurance and repairs.
A net lease requires that you pay for some (or all) of the real estate taxes on the property, in addition to the base rent for the property. Building operating costs are the responsibility of the landlord.
With a net-net lease, you are responsible for paying the base rent and taxes, as well as the insurance for the space you occupy.
Net-net-net or "triple net" leases
Triple leases pass on all the costs of operating the building, including repairs and maintenance to you as the renter. These types of leases are usually used for industrial properties.
In a percentage lease, you pay a fixed rate plus a percentage of your gross income. Percentage leases are a special type of rental arrangement for retailers in multi-tenant locations such as malls or shopping centres.