what is the common length of terms for a commercial lease?

In Leasing Property - Asked by Lindsay V. - Jul 8, 2013
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Answer(s)

Olivier R.
Broker/Agent
Toronto, ON

5 years for office space.
5 years for industrial space.
5-10 years for retail space.

Jul 8, 2013
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Lisa C.
Broker/Agent
Hoboken, NJ

commercial lease term are negotiable depend on the necessity of the tenant/landlord could be minimum of 3-5 yeas up to 99.99 year. Must of the landlord are looking for long term leases with good and well stabled firm.

Jul 8, 2013
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Michael E.
Broker/Agent
Houston, TX

I have found that most landlords prefer leases to be a minimum of 3 years for industrial space in Houston.

Jul 8, 2013
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Gavin B.
Broker/Agent
SURREY, BC

Where I operate, in Surrey, BC, Canada. A 3 year lease would be considered a short term lease, while 5 year is fairly normal from Industrial, Retail and Office. However, we have seen 10 year leases being executed for Office and Retail properties.

Jul 10, 2013
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Susan K. B.
Property/Asset Manager
Frisco, CO

3 years minimum to cover legal costs in drafting a lease. 5 years preferred for restaurant/retail in my property

Jul 11, 2013
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David G N.
Broker/Agent
Greenville, NC

Lease terms are always negotiable. Typically owners are looking for a minimum of 3 years.

Jul 17, 2013
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Nathan D.
Broker/Agent
Yucaipa, CA

Lindsay - Depending on the space and the intended use, 2-10 years is typical, with an average of 5 years for most established businesses.

Jul 20, 2013
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Samir D.
Owner/Investor
Athens, AL

In the case of restaurants, a 5yr with single or multiple options to renew is commonplace. The options to renew can effectively extend a lease, so that's something to consider as well.

Jul 24, 2013
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Anthony C.
Broker/Agent
Rancho Cucamonga, CA

Lindsay, the lease term depends on economic factors such as average rents compared to current owners rents, the type of proposed tenant, creditworthiness of the proposed tenants, cost of TI, financing agreements with lender, and there are to consider.
So I would say if you are representing a owner look at the factors above. If you are representing a tenant you would want to look at your client financial strength.

Aug 12, 2013
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Tim S.
Owner/Investor
West Linn, OR

Let me add this. If you buy a business in that building on a contract you'll want to make sure your lease term covers your contract term. Likewise you'll want a lease term long enough to recoup your expenses to remodel the space for your use.

Oct 27, 2014
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