Download PDF of All Three Worksheets Space Planning and Leasing Guide
Lease Comparison Worksheet Samuel J. Fleeman, Jr. 704-824-5635
|Rental||Lease One||Lease Two|
|Rate per Year per SF|
|Rent per Year|
|Rent per Month|
|Costs & Fees|
|Real Estate Taxes|
|Total Cost Per Month|
|Additional Transaction Costs|
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.