Retail & Office

Retail Space: Typically consists of storefronts, on or near ground-level and usually involves some display of signage.  This includes banks, restaurants, drug stores, cafes, artisan shops, etc.  Retails tenants range from small individual storefronts (mom & pop shops) to international retailers and global financial institutions.  Most retail space involves direct interaction with the consumer, which means the space will be accessed by non-tenants.

Retail spaces are often leased using a Percentage Lease, which is a combination of Base Rent + a percentage of monthly sales.

Office Space:  Mostly limited to business activity with little or no access by customers.  Access to office space is generally limited to the employees of a business, who are usually engaged in business operations such as accounting, finance, sales, technology, etc.

Office spaces are often leased through either one of four lease types:

  1. Triple Net Lease:  Tenant pays a Base Rent + all expenses, including maintenance, taxes and insurance.  This is the best lease type for most landlords.
  2. Double Net Lease:  Tenant pays a Base Rent + taxes and insurance. The landlord is responsible for maintenance expenses.
  3. Net Lease:  Tenant pays a Base Rent + some taxes, insurance and maintenance expense.
  4. Gross Lease:  Also knows as a Full Service Lease, the tenant pays a Base Rent plus usual expenses.  However the expenses are calculated based on a percentage of the tenant’s useable square feet + a percentage of the rentable square feet of common areas.  This method used to calculate expenses is also known as a Load Factor.