We compiled a list of what we think are the ten most important criteria to consider when retail leasing for your business.

Full service and triple net leases are two of the most popular lease agreement types used in commercial real estate. Even though both documents contain many similar provisions, they are quite different and should be used according to the type of property being leased. The main difference between a full service lease and a triple net lease (also referred to as NNN lease) is how they address the subject of real estate taxes, insurance, and other operating expenses associated with leasing the property.

Operating expenses, also commonly referred to as CAM charges (common area maintenance), are the second largest expense after rent associated with leasing retail, office or industrial space. A thorough understanding of what these charges entail prior to signing a lease is very important.

Most commercial real estate brokers get compensated for their work in the form of commissions. The commission is calculated as a set percentage of the total lease value or sales price of the property in the transaction. For example, a 4% commission on a lease worth $1,000,000 would be $40,000. Real estate commissions are typically paid by the landlord/seller of the property, even if the broker was hired by the tenant/buyer. Keep in mind that each party can hire and be represented by its own broker thus making it very likely to have two brokers involved in the transaction (cooperating brokers).