New York is a state with some of the most in-demand properties in the country. Considering that, it’s understandable to get excited after finding an available property for lease in this state. One way that building owners lend out their properties is by utilizing triple net leases. Here’s more information about the pros and cons of signing a triple net lease.
Advantages of a triple net lease
One of the main advantages of a triple net lease is that they’re usually long-term leases. This is beneficial for business owners because they won’t need to worry about moving after establishing a long-term location. If you can pay all of a triple net lease’s expenses, not worrying about moving anytime soon can be a comforting thought.
In most cases, properties under triple net leases are in areas with high traffic. Being in an area like this is great for a business owner who wants a steady stream of customers coming their way.
Disadvantages of a triple net lease
A major disadvantage of a triple net lease is that tenants must pay insurance, maintenance expenses and property taxes in addition to base rent. If you don’t have a large budget, paying all of these commercial real estate costs might soon become overwhelming.
If you’re interested in a triple net lease, it’s also important to know that tenants are responsible if taxes get prepared late or incorrectly. This potential liability might be too much for certain business owners to take on.
Triple net leases have both pros and cons. You should take time to understand everything that comes with this type of lease to determine whether or not it’s right for your business.