Q. How are rental rates quoted on commercial real estate? 
A. Generally commercial rental rates are quoted on a per square foot per year basis.  If the rent is quoted at $12.50 per square foot the $12.50 is an annual rate.  Assuming a store of 1,000 square feet the annual rental rate would be $12,500.00 or $1,041.67 per month.

Q. What are triple net charges?
A. Commercial real estate rates may be quoted as a gross or net amount.  Rent quoted on a gross basis implies the rent includes items such as common area maintenance, real estate taxes and insurance.  Net leases are net to the lessor so that in addition to the rent the tenant will pay their pro rata share of common area maintenance expenses, real estate taxes and building insurance.

Q. Who is responsible for repair to the demised premises?
A. Commercial lease agreements generally provide the Lessor will be responsible for repairs and replacements of all common areas as well as the roof and structural portions of the building.  The Lessee is typically responsible for the interior of the premises including all lighting, plumbing, heating and air conditioning, glass and doors.

Q.What is the typical commitment for a commercial lease agreement?
A. Commercial lease agreements may be for any period of time.  Typical owner-operator lease agreements provide for an initial commitment of three to five years with corresponding options to renew.

Q. What is an option to renew?
A. An option is a right, exercisable by the tenant, to extend the term of the lease for a predetermined period of time at a predetermined rental rate.