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Preparing a commercial real estate lease

If you have recently invested in commercial real estate, you will need to prepare a lease before you can gain rental income from tenants. Doing so effectively is a crucial part of the process. You will need to make sure that you protect your interests while ensuring that your future tenant is satisfied.

You should make sure that you have a good understanding of the type of lease that you would like to draft. It's also important that you prepare by creating a strategic vision of the tenancy.

Consider what you want to achieve

If you want to simply cover your lease costs due to the investment potential of the real estate that you have invested in, your priorities will likely be different from an investor who wants to gain profit from rental income. Therefore, it's a good idea to reflect on your priorities as an investor.

Think about what type of lease will benefit your interests

The different types of leases reflect the number of responsibilities tenants have regarding the maintenance of the building. If you as the real estate owner do not want to be involved in any maintenance logistics, an absolute triple net lease may be the right choice for you. Alternatively, if you see lucrative business opportunities when it comes to providing service to the commercial building, you can consider offering a full-service lease.

There is a huge amount of flexibility when it comes to commercial real estate leases. By having a clear vision and understanding the market, you will be able to draft a lease that will work well for you.

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