FAQ
FREQUESNTLY ASKED QUESTIONS
Q: What is the difference between gross and triple net (nnn)?
A: People lease commercial real estate properties using either a gross lease or modified gross lease or a net lease. Residential properties are usually leased under a gross lease with the exception of the utility expenses. A gross lease is also referred to as a pass-through lease or a full service lease. When a tenant leases a property using a gross lease, he pays a gross rent and the landlord has to pay the operating costs of the building risking rising operating expenses over the duration of the lease. A net lease, often called a triple net lease (nnn) refers to a lease where the lessee is responsible to pay for the taxes, insurance and maintenance of the property.
Q: I was quoted a rate of $7.50 gross. How do I figure out the monthly rate?
A: The rate is the annual rate meaning you take per square footage of the space times the rate and divide the total by twelve to figure out the monthly rate. Example: if the rate is $7.50 gross and the square footage is 2000 sq. ft. then $7.50 X 2,000 = $15,000.00 annually, or by dividing by 12, equals $1,250.00 per month at gross lease rate.
Q: Will I have 24/7 access to my unit?
A: Yes. All tenants will have keys for their individual units to access 24/7 and, if applicable, keys into common entrance areas.
Q: Who pays for the utilities?
A: Almost all times light industrial space has the utilities individually metered to each unit. If you are not sure, ask for a representation by the Landlord how the utilities are supplied.
Q: What kind of tenants are found in light industrial business parks?
A: This varies from business park to business park but generally most parks accept any business to business activities and companies which need warehousing of their products, assembly of components, distributors, laboratory space, storage, or distribution facilities. In some cases, businesses, such as marketing, graphic design and architectural firms looking for more affordable office space, have converted their units into lofty, industrial-style offices.
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