DHRP

Unlocking the Secrets of Commercial Real Estate Leases in Texas

Imagine this: You’ve discovered the perfect commercial space for your business in the heart of downtown San Antonio. The location is ideal! It checks all the boxes—ample square footage, a floor plan tailored to your needs, and modern amenities, including high-speed internet capabilities. You’re ready to sign on the dotted line! But wait—do you fully understand the lease agreement you’re about to commit to?In the competitive world of Texas commercial real estate, knowledge is power. When it comes to lease structures, that knowledge can make or break your business’s financial future. Let’s explore the various types of lease structures and equip you with insights that could ultimately save you thousands—or cost you greatly.

The Gross Lease: Simplicity at a Price

Imagine a scenario where one check covers everything—rent, taxes, insurance, and utilities. That’s the appeal of a gross lease, which is popular in office and retail spaces. However, this simplicity often comes at a premium. Here are two types to consider:

  • Full Service Gross Lease: The landlord manages all expenses, but you’ll pay for the convenience.
  • Modified Gross Lease: This option allows for negotiation on specific utility responsibilities, potentially saving you money.

Net Leases: A Balancing Act of Responsibility

As we dive deeper into lease structures, we encounter net leases, where financial responsibilities shift more towards the tenant:

  • Single Net (N): You cover rent plus property taxes.
  • Double Net (NN): You add insurance to your expenses.
  • Triple Net (NNN): This is often considered the holy grail of commercial leases, where you’re responsible for rent, taxes, insurance, and maintenance. It’s popular among savvy investors seeking long-term tenant commitments.

Percentage Leases: Sharing in Success

In the fast-paced retail sector, percentage leases create a partnership where your success translates into the landlord’s success. This structure combines a base rent with a portion of your gross sales—a gamble that can yield significant rewards in high-traffic areas.

Variable Leases: Riding Economic Waves

For those who prefer flexibility, variable leases offer options:

  • Index Leases: Your rent adjusts according to economic indicators, keeping your business aligned with current market trends.
  • Graduated Leases: A predetermined schedule of increases helps you plan for future expenses.

The Road to Informed Leasing Decisions

Before you sign that lease, take a moment to consider:

  • How does your business cash flow align with this lease structure?
  • What level of control do you need over the property?
  • Does this lease fit into your long-term financial strategy?
  • How do current market conditions in your Texas location impact this decision?

Understanding these lease structures is essential for success in the Texas commercial real estate market. But you don’t have to navigate these complex waters alone. At DH Realty Partners, we’ve been guiding businesses through the intricacies of commercial leases since 1965. Our team of experts is ready to help you decode the fine print and secure a lease that sets your business up for long-term success.Don’t leave your business’s future to chance. Call our team at 210.222.2424 today, and let’s create a lease strategy that propels your business forward in our competitive commercial landscape. Your dream space is waiting—let’s ensure the lease is just as perfect as the location!

Picture of Tiffany Trude

Tiffany Trude

Associate & Marketing Coordinator
210.629.4151
tiffany@dhrp.us

WE ARE DHRP | DH REALTY PARTNERS

Tiffany Trude