Lease Structures

Unlike standardized forms used in renting or purchasing a home, commercial real estate lease contracts vary significantly from deal to deal and often involve extensive negotiations. But have no fear, VentureSite’s outsourced real estate service covers this part of the process too. We offer the following as summary overviews of three types of commercial leases:

Direct Lease – A direct lease is a contract between the tenant and the landlord. This type of deal is usually for three to five years. As a result, tenants will often size their building based on their projected headcount toward the end of the lease period so they don’t run out of space while they are under contact. This often leads to unused space in the early part of the lease, increasing the effective cost per square foot during that period.

Conventional Sublease – A sublease is a lease contract in which the existing tenant holding a direct lease with the landlord then subleases the space to a third company. The sublease is usually for a fixed size (usually the entire space leased by the original tenant) and the term is typically the entire time remaining on the direct lease.

NEW Pay as You Grow™ Sublease – Under this innovative lease, one company subleases the unused space of another with each having their own designated area within the overall building. Each company is on a separate wireless computer network while they share common areas, such as the lobby and restrooms. A Pay as You Grow sublease typically saves more money and has greater flexibility than a conventional sublease and is therefore ideal for growing companies.

VentureSite is proud to offer the exciting new concept of Pay as You Grow subleases, along with conventional subleases and direct leases. For more information, contact VentureSite now.

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