Arizona Commercial Lease Agreement
In Arizona, the owner of a property may wish to lease his property to any willing occupant. With this form, the landlord may lease to a retail, industrial, or office business. Although similar to other lease agreements, the Commercial Lease Agreement differs in the fact that the landlord may not be given rent until the business tenant begins earning sufficient money. The tenant will also have to be given permission to seriously alter the property being rented.
There are three (3) general types of Commercial Lease Agreements:
- Gross – This option is the best situation for the tenant, because the tenant is only required to pay a monthly cost, with the landlord paying for all utilities, repairs, taxes, etc.
- Modified Gross – This option is between the two other options, mixing the costs of the property between the landlord and tenant. The two will typically discuss who pays what regarding the property, before the first monthly payment.
- Triple Net (NNN) – This option is usually the landlord’s preferred option, as it requires that the tenant pay for all major utilities, including: water, electricity, heat, parking, taxes, and minor to major repairs.
All commercial lease laws may be found in the State Statutes Title 33 and scroll down to Chapter 3 (Landlord and Tenant).