Typical Commercial Lease Terms That Everyone Should Know

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During your search for commercial space, I’m sure that you’ve come across a lot of commercial real estate jargon - but you need not worry! You don’t have to know everything.
This video will cover the basics of commercial leases including common lease structures, important lease clauses, and the most common delivery conditions of commercial leases.
By the end of, you won’t know everything about commercial leases, but you’ll know enough to be dangerous.

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// ABOUT TYLER

Tyler Cauble is Founding Principal and President of The Cauble Group, an East Nashville-based commercial real estate brokerage serving the Greater Nashville Area. He's a native Nashvillian that has not only been a witness to the city's tremendous growth, but is also involved in it through his developments, renovation projects, and volunteer work.

As President of The Cauble Group, Tyler helps bring together buyers, sellers, landlords, and tenants in retail, office, industrial, and multi-family real estate. He’s committed to helping business owners understand the market so that they can grow their business and be part of Nashville’s future. Cauble is also the best-selling author of Open For Business: The Insider's Guide to Leasing Commercial Real Estate.

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0:00 - Intro
0:28 - Lease Structures
0:40 - Triple Net (NNN)
1:24 - Full-Service Gross (FSG)
2:01 - Modified Gross (MG)
2:36 - Lease Clauses
2:49 - Sublease Clause
3:24 - Exclusive Right
3:48 - Rent Escalation
4:21 - Delivery Conditions
4:37 - Vanilla Shell (Warm Shell)
5:13 - Cold Dark Shell
5:51 - Second-Generation
6:38 - Conclusion

DISCLAIMER: Links included in this description might be affiliate links. If you purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you. I'm also not your CPA, attorney, or broker - consult the professionals!

Sharing commercial real estate tips to help you grow your investments and your business.

[joshreed]

So helpful. We are about to sign a first rental lease in a large box shopping center.
It's scary because of the dollar amounts involved, but the foot traffic is so attractive.

[jaygough]

this was super helpful!! Much appreciated

[twinlionstrucking]

Super helpful. Filling out an LOI right now and I totally forgot about exclusive rights. Thank you so much for bringing it up. Dropping it in there. 💥

[vlallen]

Thank you for the video this was very helpful.

[tinamynlakhani]

This was extremely helpful! thank you!

[bahmannosratollah]

Thank you so much for your information, great job.

[kku]

Thank you for making so many videos which increase our knowledge . Where can I find a trustable commercial broker? Do you have any referral?

[Amcautomotive]

In a NNN lease would the landlord be in charge of replacing the main breaker box / main panel for the building?
Thank you

[ScottFranklin-ofnz]

Commercial spaces and leases finding that exclusive for delivery sharing address of a corporate store is something that needs to be sought after with little compromise it should be a strict law

[glenjenkins]

what abt rules/regulations on leasing an office space, that i mortgage, to a cannabis retailer? like can you lease out an office/retail space that is part of a building that is currently under mortgage?

[Ladybarber]

I’m in California, L.A. County
I don’t know what the market rate per sq ft is. I found a 960 sq ft space in a Plaza that has a lot of empty (abandoned) spaces. It’s in a mid end side of town and I want to open z as Barbershop 💈 place used to be a beauty salon. Previous tenants left it in shambles so needs work but I don’t know how to negotiate my lease so they don’t screw me over. I want to stay and do business there long term and I don’t want to end up working just to pay my rent and end up failing. How do I negotiate my lease???

[irisroyal]

Hi, is it possible to buy the structure of the business in a long term while paying the rent ?Thank you

[Stinadupreetattoo]

How do I find someone to go over my lease agreement?

[rantym]

Unconscionability is possible when a Landlord don’t explain that property taxes would be paid by tenant and 30% rent increase?

[ms.ladietoyou]

Ok you scared me. Lol. I will stick with my food truck. Less stress

[johnbrown]

Dangerous to who? Because anybody can be dangerous to themselves with their knowledge or lack there of.

[redmouse]

What does the landlord have to show to justify a 40% monthly increase in NNN?

[xtiann]

Your intro music is way too loud compared to the rest of the volume of your video

[jaytee]

Hey bud would I be able to email you directly and li k your brain on a few things . I am a new commercial agent NYC and would love ask you a couple questions