JGM Properties, a real estate company in Bloomington, MN, has recently completed a piece of research on commercial real estate leases in Minnesota. Following up on a study of the various types of real estate properties, they have now revealed information on the types of Minnesota commercial real estate leases. This information will help the company deliver better services to their clients, as well as enable clients to make more informed decisions.
“We recently completed a study on the types of commercial real estate properties available in Minnesota,” says Eli Russell from JGM Properties. “We found that we offer all the relevant types of properties for our geographical area. However, we also found that there are different types of leases and we felt we needed to investigate these so that we can ensure our customers get the service they require.”
The research revealed that there are three types of commercial real estate leases in Minnesota. The first is the gross lease, which is very similar to the full-service lease. This is so similar, in fact, that the terms tend to be used in an interchangeable manner. The second type of lease is the triple net lease, which is not one of the most popular types of leases out there.
“With a triple net lease, clients have to pay a significant amount of money towards various expenses, including taxes and insurance,” explained Eli Russell. “This makes it quite unpopular. However, landlords tend to love it, because they have fixed rents so it is easier for them to budget and manage their income.”
The final type of lease is the modified net lease. This has been developed to compromise slightly on the triple net lease, making it more attractive to tenants. Some of the properties handled by JGM Properties, as can be seen on http://ift.tt/1MpOXKX, are available on modified net lease basis. It essentially allows landlords and tenants to come together and work out terms and conditions that are suitable for both of them. This is quickly becoming the most popular option, although coming to a suitable agreement can sometimes take longer than desired.
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via JGM Properties