Learning fundamental commercial property rental provisions can allow you to build your understanding of the business property investing arena. These terms should be known prior to signing a commercial lease. To get more info about commercial real estate you can go http://www.commercialrealtyofli.com.
Common Area Maintenance (CAM)
This is a very important commercial real estate lease term to know. Most of the time when you have a multi-tenant building, you factor in charges for CAM. Usually, tenants pay $12 a square foot for annual rent, plus a certain percentage for CAM. So CAM for a building is passed on to tenants.
A number of the problems considered in the industrial arena aren't even accessible residential leasing. As an example, if your commercial property investment goal is little workplace warehouses, strip malls, or even strip retail facilities, CAM is just one of the things which you want to study.
Before you begin renting or purchasing those kinds of facilities, then you need to understand what the normal CAM is to get your type of property. Occasionally in certain smaller properties, there's no CAM, because the landlord pays it.
That is all part of your prices as a landlord in this kind of property. It isn't a pass-through, as you cannot legally pass through CAM expenses into your renters if nobody in the region who owns a comparable land is having their renters pay it.
If you pay a fixed rent plus a percentage of earnings over and over the fixed lease, you own a percentage rental agreement. You will most likely not encounter portion rent situations quite often as a landlord.