if my business is leasing office space, am i required to pay a real estate tax?

In Leasing Property - Asked by Michael B. - Apr 8, 2015
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Answer(s)

Margarita F.
Broker/Agent
East Elmhurst, NY

That depends on your lease contract. Some are NNN which means they have to pay all or a fraction of the real estate tax, the insurance of the building and maintenance of the building. On the other side of the spectrum, some tenants pay only their expenses of their business. The lower the rent, the more expenses you are expected to rent, but all is negotiable. If you are asked to pay R.E tax, you might want to ask for a lower rent or lower increases, or any other benefit.
The wiki link is very clear and easy

Apr 8, 2015
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Tai N.
Broker/Agent
City Of Industry, CA

Hi Michael, I agree with Margarita.
It all depends on the lease that you signed with your landlord. There should be paragraphs that address how the operating expenses are handled to include the real estate taxes, supplemental real estate taxes (if any), real estate insurance, utilities, etc...
It is handled differently depending on the state, type of office space, type of landlord, etc. At the end of the day, it is what was negotiated and agreed to.
A careful review of your executed lease should let you know how such expenses are handled, if you are still unclear and/or it is not addressed explicitly in your lease you may want to consult with a real estate attorney.
Good luck.

May 5, 2015
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Sam P.
Redlands, CA

The landlord and tenant to a lease can agree to assign expenses to either party. Everything should be explicitly spelled out in a written lease agreement. I've been successful in representing tenants in the lease agreement negotiations to have many clauses modified or removed. It's all negotiable.

May 11, 2015
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