What’s the difference in the Types of Commercial Real Estate Leases?

Different Types of Commercial Real Estate Leases

Matching a landlord and tenant in the commercial real estate process can be difficult unless you have a lease type that benefits them both. Both parties have their own priorities. The tenant, for example, wants to negotiate the best deal they can on rent. The landlord, on the other hand, is interested in the income from rent and maintaining the control of expenses. Due to the needs of both parties involved it’s important that you use the right type of lease when bringing an offer to the negotiating table. Commercial leases have a tendency to to be more complicated because there are many considerations to take into account.In direct contrast, residential leases tend to be less complicated. The tenant handles their rent and utilities (minus sewer) and the landlord handles all other expenses.

Lease types tend to be determined by the kind of tenant business:

  • Manufacturing businesses – a manufacturing business such as a heavy machinery shop or an automotive shop tend to dip heavily into utility costs. Also, due to the nature of these businesses, there is natural wear and tear on the commercial property for rent. More than likely constant repairs will be an issue. Landlords tend to use triple net leases in situations such as these, though modified net leases can also be utilized.
  • Retail businesses – many retail business owners have to deal with sales shifts throughout the year due to multiple factors. For example, a store may not make nearly as much during the summer as they would during winter due to the Christmas season. Because of these factors, tenants have a preference for low lease payments during the times of year that they have slower business and switch to higher payments during high cash flow months. This is known as a percentage lease.
  • Offices With Consistent Clients – many consultants, accountants, and attorneys use the gross leasebecause they’re typically interested in only paying a fixed amount every month, much like a residential lease. On top of the fixed amount, they may have to pay utilities. All other expenses fall upon the landlord.

Full-Service Lease Gross Lease

Lease Types

  • Gross Lease/Full-Service Lease – with the gross lease, the rent is all-inclusive. This is a very tenant-friendly lease because the landlord covers all or most of the expenses associated with the property. These expenses include:
    • Taxes
    • Maintenance
    • Insurance

It’s advised that when you’re negotiating the terms of a gross lease, you inquire into the kinds of janitorial services provided and the frequency of such services. Keep in mind that all excess utility consumption, beyond the regular use of the business, might fall back to the tenant. The tenant covers their own taxes and insurance. Smaller companies can benefit from this type of lease because it allows them to predict future expenses and focus on the business itself.

  • Net Lease – The net lease is broken down into multiple subcategories, but with this kind of lease, the landlord charges a lower rent for the commercial space for rent in question and also covers the other expenses associated with the maintenance, operations, and use of the premises. These include:
    • Property insurance
    • Real estate taxes
    • Common area maintenance items (CAMS)
    • Janitorial services
    • Sewer
    • Water
    • Trash collection
    • Landscaping

The Net Lease is further broken down:

  • Single Net Lease (N Lease) – the tenant covers the base rent as well as a pro-rata share of the property taxes associated with the building. This means that the tenant must also tack on an expense for the proportion of total building space of the building they are leasing. The tenant must also cover janitorial services and utilities.
  • Double Net Lease (NN Lease) – the tenant includes the base rent as well as a pro-rata share of the property taxes associated with the building. They must also cover property insurance. It falls upon the landlord to cover common area maintenance. It’s still the responsibility of the tenant to cover the utilities and janitorial services.
  • Triple Net Lease (NNN Lease) – AKA the net netnet lease (or NNN lease), the triple net lease involves the tenant paying all or a portion of all of the net expenses:
    • Property taxes
    • CAMS
    • Insurance

The Triple net lease is the most popular of all the net lease types for retail spaces, such as office rentals, and commercial freestanding buildings. The tenant still covers janitorial services, insurance, taxes, and utilities. This kind of lease is more landlord friendly.

  • Absolute Triple Net Lease -You can think of this lease as a far stricter version of the NNN lease. The tenant carries all risk associated with the office space for rent. They cover all expenses following a catastrophe and must pay even if the building has been condemned. This lease is fondly referred to as the “hell-or-high-water lease”.
  • Modified Gross Lease – the modified gross lease is both a tenant and landlord friendly agreement. In this kind of lease, the rent is requested in a single lump sum. This can include all of the previously covered nets, insurance, CAMS, and property taxes. The tenant and landlord can negotiate which “net” is included in the base rent.

If you’re out hunting for an office space for lease, or any other kind of commercial building, you want to make sure that you know all of your lease options. Depending on your situation, some lease types may be detrimental as opposed to others that can help you to grow due to the current financial position of your business. Remember to read your lease very carefully and ask questions of anything that you don’t understand.

Featured image Credit: edar / Pixabay

Doing Feng Shui The Right Way in Your Office

Written by Gregory Miller

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An office that is aligned with feng shui principles is an office that inspires productivity and power.

Whether you are moving into a new commercial property or looking for ways to spruce up your office, here are six ways to create a feng shui office space.

1.Clear Out the Clutter

When you start searching for office space for lease, notice if any clutter has been left behind by the previous tenant. If so, clear out the clutter.

Mess and clutter have a significant impact on our emotional, spiritual, mental, and physical well-being. Once clutter is cleared out of an office, vital energy is brought in that will help to:
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  • Attract financial success
  • Increase productivity
  • Improve focus and mental clarity
  • Increase efficiency and effectiveness
  • Reduce stress
  • Promote a feeling of peace and calmness
  • Create a space for new creative endeavors and projects to thrive

It is important to establish a workstyle to help maintain an organized workspace.

Everything that you use on a daily basis should be kept within arms’ reach so that you don’t have to get up from your desk.

Deal with paperwork at least weekly to avoid feeling overwhelmed when you have to deal with bills, filing, and other tasks.

To help maintain your new clutter-free space:

  • Leave your desk tidy and neat at the end of each day
  • Avoid overcrowding any bookshelves
  • Open up a cramped spaced with mirrors
  • Keep cords to equipment well hidden

2. Position Your Desk According to Feng Shui Principles

An office that is laid out according to feng shui principles should ensure that you are seated in a power position.

When you sit at your desk, you should be able to see the door and as much of the office as possible. Take this into account when looking for offices for rent. Keep in mind that, according to feng shui, the person who is seated farthest from the entrance is thought to have the most power.

Keep these points in mind:

  • The person who sits closest to the entrance is going to be distracted by petty details
  • Those who sit with their back to the entrance will suffer backstabbing and succumb to office politics.
  • If you share an office space, avoid sitting back to back with another person
  • Avoid sitting face to face. This creates conflict.
  • Use headphones and speak quietly during phone conversations to incite acoustical privacy

If the office space necessitates people sitting back to back or face to face, the desks should be staggered. Small barriers can also be created with photos, plants, and even room dividers.

Some workspaces necessitate an open-plan environment. Sharp edges of desks create poison arrows which contribute to discomfort, dis-ease, and irritability. Plants and pictures can be used to soften the edges.

In an open office, ensure the aisles are wide enough to allow positive energy to flow through. Subtle colors also help, since vivid shades are too active in a busy space.

3.Use Imagery and Artwork to Affirm Goals

When office workers are surrounded by objects and images that inspire them, it helps to create living affirmations of their goals.

The objects and images that you decorate your office with should help you to feel productive and creative. You could:

  • Incorporate inspiring window treatments
  • Add fresh flowers
  • Hang beautiful art
  • Hang up mottos and pictures that represent what you would like to accomplish
  • Choose accessories and furniture that speak to you of abundance and prosperity

An office is the ideal template to create a space for what you desire in your life and career, and the things you choose to put in your space should reflect what it is you want to achieve. This is similar to the concept of environmental psychology.

Infusing the office with your personality will foster personal growth. Carl Jung’s numinosity theory cites that every item in the office will have an influence on you, so it should be an uplifting and positive effect.

4.      Create Harmony and Balance

If you are looking for an office space for lease, you will need to consider how to create harmony and balance in the office. There are two ways you can do this:

1. Feng Shui Elements

These represent the natural elements of metal, earth, fire, water, and wood. All five elements should be present in the environment and they should be balanced. This makes for a more balanced person who has a greater chance of manifesting their wishes.

For example, if you work in an overly bright office – considered the fire element – with too many light and shades such as metal cabinets, computers, and desks (the metal element), you need to concentrate on bringing the other three elements in. For instance, you could bring in earthy colors to create the earth element, a few plants to create the wood element, and a fish tank to create the water element.

2.Yin and Yang

This represents the masculine and feminine energies. You should strive to strike a balance between the two to create a nourishing energy. For instance, if you work in an overly masculine office environment with light colors, high ceilings, an abundance of natural light, and angular furnishings, you need to balance it with feminine energy, such as soft furniture, curved and flowing shapes, and window coverings.

Whichever method you decide to use does not matter. What counts is that the space is harmonious and balances.

5.Choose the Right Feng Shui Colors for the Office

Color has a significant impact on our physical and psychological well-being. Whether you are looking for commercial property for rent for your business or are considering office leasing, you will need to consider:

  • The psychological effects color has
  • Which colors are most appropriate for an office space the follows feng shui principles
  • The feng shui bagua, or map, the colors that correspond to each of the sections

A bagua map is an ancient feng shui instrument aimed at helping you to bring in good energy. When you apply the map to an area, each section will align with different aspirations. The colors will give you an idea of how to break up the space and determine which parts of the office are more important and need more attention.

Appropriate feng shui workspace colors include:

  • Pale gold
  • Soft yellow
  • Blue-green
  • Pale green
  • Pale orange
  • Sandstone

Earth tones and browns tend to stabilize and ground a work environment, but they will not stimulate the mind. However, adding white to the overall color scheme helps to increase mental focus and clarity.

6.Include Things That Relieve Stress

Offices can keep employee’s irritability and stress to a minimum by selecting furniture that has rounded corners, or at least placing sharp corners out of the way of foot traffic.

It is also a good idea to avoid too much glare or harsh indoor lighting that can lead to fatigue and irritation. Adding running water in the form of a fountain or water feature, soft music, and even essential oils can keep worker’s stress levels down.

Are You Looking for Office Rentals?

If your current commercial or office space is no longer conducive to the success of your business, it may be time to find a new space that you can apply the above principles to. Contact us to help you find your next workspace.

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10 Ways to Optimize Your Office Space for Productivity

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Productivity can be enhanced in various ways. You want to be rested, nourished and, of course, organized. It is difficult to get anything accomplished if your workspace is in disarray. There are many ways to furnish and optimize a commercial space for rent to promote efficiency. Ten of them are explained below, so there are fewer barriers to getting things done in the office.

1.Get a Large Enough Desk to Work Comfortably

Desk size is a major consideration for any workspace. If it is too small, the clutter will destroy any prospects of productivity, and you will waste valuable time looking for and moving items. The desk should be large enough for a computer, phone, notebook, binder, or any item or equipment you use during a normal day. Consider any tools used as well, especially if you’re an artist. Corner and L-shaped desks tend to have more surface area, and these configurations can boost productivity and comfort if your office space for lease permits it.

2. Keep Your Office Ergonomic

Productivity is a real challenge if you are uncomfortable. To maximize your comfort, tend to the ergonomic aspects of your office space, arranging the computer and office chair so there’s a direct line of sight with the computer screen. Both hands should comfortably reach the keyboard. Sit straight up and make sure there’s enough back support. If you can limit back, arm, and eye strain, then less time is spent trying to be comfortable and more of the day can be devoted to getting work done.

3.Everything Should be Within Arm’s Reach

Your office space should allow you to reach notes, pens, planners, a printer, files, and anything else on your desk or in its drawers. It shouldn’t be a strain to get to office supplies. The exact configuration may vary based on your preferences, but immediate access to equipment and supplies, and knowing where everything is, will make your day much easier.

Also, choose the type of storage space wisely. Smaller storage bins and drawers are easier to organize and search through. Larger ones will increase the time spent looking for items that should be within reach.

4.Invest in a Functional, Adjustable Office Chair

When it comes to offices, simple seats or dining chairs won’t do. These are not designed to be sat in for long periods of time. Typical office chairs have a swivel design, wheels, high backs, and adjustability. Your chair should let you move freely about the workspace. Adjustable height is a convenient feature to maximize comfort any time of the day.

5.Focus on a Comfortable, Productive Atmosphere

The atmosphere of a workspace is a big influence on productivity. A temperature that’s cool but not too much so, or too warm, boosts comfort. The office lighting should be bright, so you stay awake and alert all day. Good lighting also helps to prevent eyestrain. Daylight bulbs are ideal for office rentals and even home offices, where soft white bulbs used in apartments may not promote work efficiency. A full-spectrum lightbulb can also be sufficient. It can prevent seasonal affective disorder as well.

There are other ways to optimize the atmosphere of your office space for rent. Music is effective for staying focused, if the circumstances permit. Any genre of music will do; it all depends on your taste. Some people even play background noise to limit disruptions. Sound can put your mind in focus and personalize the work environment, so you are motivated and stimulated.

Other people are motivated by smell. Essential oils in the office can help keep you mentally alert and awake. Aromatherapy is a natural way to boost energy, so being productive consistently throughout the day is a more attainable goal.

6.Have a Maintenance Plan

Clean up your office space at least once a month, or at least take some time to sort things. During this monthly maintenance, discard supplies you don’t use. Review what is irking you during the work day and slowing you down, and adjust the workspace accordingly. Clean up the desktop at the end of the day as well; it will enable you to start fresh the next day.

7.Experiment with Configurations

Many offices for lease use traditional cubicles. These allow for more privacy and minimize distractions from other co-workers. An open layout provides more opportunities for employees to socialize and collaborate. For some, this concept inspires creativity; however, it can be distracting for others, as the work environment tends to be noisier.

8.Ditch the Paper

Storing everything electronically (and of course backing it up) is not just efficient. It also reduces the mess, while helping your office look neater. Using less paper means fewer pages to sort through for information. You also spend less on supplies.

9.Maintain the Digital Workspace

Organizing your computer file system, and deleting documents, files, and folders not used, is as effective for productivity as keeping your desk in order. Set up a system for managing e-mail. Tend to the bookmarks in your web browser too, and you may be surprised at how much more productive you can be. Organizing all your computer media and documents can save lots of time.

10.Keep Some Food Nearby

Working and eating are not often mentioned together, but the idea is worth mentioning. Healthy, nutritional foods such as vegetables, fruits, or even protein bars help raise the energy level. Snacking between tasks can therefore boost your productivity. Avoid sugars and fats, though, as these can perk you up for a short time, then cause you to crash.

Finding sufficient commercial property for rent is one step to setting up an office. Optimizing it for productivity is a separate challenge. These tips are proven to save time and help people work more efficiently. You could be wasting valuable time by not optimizing the workspace, minimizing distractions, and giving yourself the opportunity to be comfortable.

Featured Image Credit: StartupStockPhotos / Pixabay

Welcome to Atrium Properties!

Atrium Properties Clifton Park Office Leasing & Rental

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Atrium Properties is an office rental and leasing company located in Clifton Park, NY. We offer spacious, well maintained office space for lease in multiple parts of Clifton Park. All of our buildings are close to the Northway as well as plenty of great places to shop and eat.

Our goal with all of our Clifton Park offices for lease is to make sure that everyone that rents an office from us is always happy. We are here for you and we want to be your partner in terms of your company offices.

Contact us to learn more about our offices for lease and we can tell you about what we can offer you for your growing business!

Clifton Park Rental Properties Include: