The commercial lease: what you need to know before signing
If you’re interested in a commercial lease, it’s probably because you’re looking for a space to continue growing your business. But even before you find the ideal workshop, office or premises, take the time to read the following to better understand this type of contract. If you’re well-informed, you’ll have everything you need to continue on your path to success!
An important step
Renting your first commercial space is a milestone for any business. That’s why it’s important to understand the various aspects before you sign your lease. Location, price, inclusions, clauses and duration are all points to consider.
Fortunately for you, at Mon Espace Atelier, the concept is based on the all-inclusive formula, which greatly simplifies the process and day-to-day business.
Commercial or business lease in a few words
While the most common leases consist of a standardized 4-page form with pre-established points to be filled in, some leases can include many variables. So there’s no single standard format here. The essential is to include the points that are important to you.
The most common term for a commercial lease is 3 to 5 years. At Mon Espace Atelier, you can sign for as little as 1 year under certain conditions, and most of our leases are for 1 to 5 years, giving you maximum flexibility.
Evolving spaces!
We’re straying a little from the rules surrounding commercial leases here, but the precision is important. Mon Espace Atelier offers a choice of spaces that can be paired and modulated to suit your company’s transformations and expansion, for a rental period of one year or more.
Leasehold improvements
Leasehold improvements are the work your owner performs at your request to adapt your commercial space to the needs of your business. This is one of the distinctive features of Mon Espace Atelier. In fact, we can adapt your premises on a turnkey basis and provide you with a financing plan in the form of a lease under certain conditions.
Types of commercial leases
Although there are no fixed rules, commercial leases can be divided into several categories: triple net, double net, net lease, percentage lease, triple gross, double gross, semi-gross, gross lease and all-inclusive MEA lease. They are classified according to the expenses to be borne by the tenant.
1. Gross, triple gross, double gross and semi-gross leases
This type of lease adopts a slightly more comprehensive or efficient formula. The tenant pays a pre-determined amount that includes almost all expenses. This type of lease is the closest to the all-inclusive Mon Espace Atelier lease.
2. MEA all-inclusive lease
This type of lease is perfectly suited to small businesses. This lease surpasses all norms and relieves the lessee of a host of administrative tasks. Our goal is to help you focus fully on your business and what’s most important to you: the success of your business.
This includes:
– basic costs;
– common costs (snow removal, landscaping, building maintenance, waste collection, building insurance, etc.);
– energy costs (electricity);
– cost of city occupancy permit;
– the cost of your door sign permit;
– the cost of the floor plan (planning and design department);
– financing service (if applicable) maximum 36-month lease;
– cleaning costs (now provided to cover cleaning costs on the day of departure);
– security deposit (deposit at signing to cover any breakage or damage);
– dismantling costs (cost of dismantling work carried out by the tenant).
An all-inclusive, fixed-cost monthly lease is a lease that includes as many elements as possible. By being transparent and including everything the tenant would have to pay individually over the course of a lease year, there are no surprises, either on arrival or on departure.
3. Net, double net and triple net leases
Among other types of leases, there are several versions and other names, such as supernet and hypernet. More commonly, it’s called a net, double net (net net) or triple net (net net net) lease. Just remember, the more “net” there is, the more you have to pay. However, it’s the content of the lease that will determine the precise obligations of each party. The lease gives the owner a great deal of freedom.
4. Proportional or percentage rent lease
Under this type of lease, in addition to paying the established base rent, you are required to pay a percentage of your gross sales in excess of an established minimum. This amount is added to your commercial rent. This type of lease requires the tenant to be accountable to the owner.
Profitable support
At MEA, we’ve made it our mission to support small and new businesses. By facilitating access to premises that match your image, your budget and your needs, we provide you with a concrete solution within your reach. We’ll be happy to tell you more about your future commercial lease and our scalable spaces ranging in size from 300 to 2,500 square feet, all located close to highways to maximize access and visibility.
Our projects bring your plans to life!
Have you started your business or are you growing and looking for the ideal space to expand? A leader in Quebec since 2015, our prestige industrial, service commercial and office spaces are available in Joliette, Saint-Jerome, Sainte-Therese, Vaudreuil, Mascouche, Drummondville, and soon throughout Quebec! Find your dream location by contacting our team today.