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Triple-net lease may be option for commercial real estate

| Nov 9, 2020 | Commercial Litigation |

Real estate matters are complex, and no one involved, whether buyer, seller, landlord or tenant, wants more complications than necessary. However, the parties involved typically do want to get the best deal as possible, particularly with commercial real estate matters. If a Texas business owner is considering renting commercial space, a triple-net lease may be an option.

A triple-net lease often puts the tenant in charge of handling certain expenses that may be covered by a landlord under different lease types. For example, the tenant may be required to pay for building maintenance, property taxes and insurance coverage. These details can be costly, and in some cases, it may not seem beneficial for a tenant to pay them. However, a triple-net lease with such stipulations often has lower rent amounts than other arrangements.

This type of lease can also give the tenant more power over how the property is used. For instance, if the tenant wants to remodel certain aspects of the property, it is typically a viable option to do so. Of course, it is important to carefully review and understand the specific terms of such a lease before making any major adjustments to the property.

Though a triple-net lease can often come off as more favorable to the landlord, it can have benefits to the tenant. Often, the beneficial outcomes in commercial real estate deals depend on the specific terms, so it is wise for tenants to negotiate their leases rather than signing the first document presented by a prospective landlord. Because leases are contractual legal agreements, it may benefit Texas business owners to have legal advocates on their sides during this process.