Compare Leases Work Sheet

Download PDF of All Three Worksheets Space Planning and Leasing Guide

Lease Comparison Worksheet       Samuel J. Fleeman, Jr.   704-824-5635

 

RentalLease OneLease Two
Square Footage  
Rate per Year per SF  
Rent per Year  
Rent per Month  
   
Costs & Fees  
Building Insurance  
Contents Insurance  
Real Estate Taxes  
Building Maintenance  
Grounds Maintenance  
Trash Removal  
Electrical  
Gas  
Storm Water  
Water/Sewer  
   
Total Cost Per Month  
   
Additional Transaction Costs  
Brokerage  
Attorney’s Fees  

 Work Sheet Information

Is the Lease considered a “net” lease or a “gross” lease. Confusion begins when people use terms such as “triple net”, “modified gross”, “gross plus utilities,” “net, net,” or even “net, net, net.” The bottom line is a lease is either “net” or “gross”. If a lease is net, you, the tenant (the lessee), will be responsible for at least one additional expense of the space over and above the base rent. A gross lease means that all applicable cost associated with the space are included in the total (base) rent. In today’s real estate market, a true gross lease is rare, because most tenants pay at least one or more expenses associated with their business space.

Another term important to retail merchants and restaurants is “percentage rent” where all or part of the rent is calculated based on a predetermined formula using the sales revenue generated at that location. Escalations, graduations, indexes and adjustments: will define methods to be used to change the rent over time. They may be dollar changes (e.g., $100 per month), percentage changes (+5 percent), unknown future percentage changes (CPI, or consumer price index) or and other mutually accepted measures. Neither are included in the Work Sheet but they could be factors.

Many lease terms affect your costs as a tenant. It is important to evaluate each of the lease’s terms, their potential value and/or their possible hidden costs.

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