Understanding Commercial Leases in Greeley: What Every Business Needs to Know
- BNI Front Range Pace Setters
- Apr 2
- 3 min read
By Erik Caffee, Commercial Real Estate | Waypoint Real Estate
The commercial real estate market is booming, and leasing has become a top choice for businesses looking to secure space without the financial commitment of purchasing. However, navigating commercial leases in Greeley can be complex, especially with different lease types, hidden costs, and legal implications.
In this article, we’ll cover:
Where to find commercial properties
Understanding gross leases vs. triple net leases
How to calculate commercial rent
The leasing process, from Letter of Intent to possession
Where to Find Commercial Properties and Commerical Leases in Greeley
The two main platforms for publicly marketed commercial properties are:
LoopNet – Think of it as the Zillow for commercial real estate. It’s user-friendly, but agents must pay to have listings featured.
Crexi – Another listing platform similar to LoopNet, often featuring different properties.
For off-market deals, working with a commercial real estate broker is key. Brokers often have inside knowledge of upcoming vacancies or owners looking to lease space before it’s publicly listed.
Gross Lease vs. Triple Net Lease: Understanding the Differences
Gross Lease (Best for Tenants)
✔ You pay one fixed monthly amount. ✔ Rent includes property taxes, insurance, and maintenance. ✔ The only increase is the pre-negotiated annual rent escalation (e.g., 3% per year).
Triple Net Lease (NNN Lease) (More Common in Commercial Real Estate)
✔ Rent consists of two parts:
Base Rent (set lease rate per square foot)
Triple Net Costs (property taxes, insurance, and maintenance expenses) ✔ The total rent amount can fluctuate based on actual property expenses. ✔ If maintenance costs exceed projections, tenants pay the difference at year-end.
🔹 Example: If projected expenses are $20,000, but actual costs are $30,000, tenants pay an extra $10,000 at year-end.
How to Calculate Commercial Rent
Commercial leases often list prices as per square foot per year, rather than a simple monthly rate. Here’s how to calculate:
Example Lease Terms:
Base Rent: $16 per sq. ft.
Triple Net (NNN): $5.25 per sq. ft.
Total Rent: $21.25 per sq. ft.
Space Size: 1,650 sq. ft.
Calculations:
Annual Rent: 1,650 sq. ft. × $21.25 = $35,062.50 per year
Monthly Rent: $35,062.50 ÷ 12 = $2,921.88 per month
The Commercial Leasing Process
Step 1: Find a Space
Search LoopNet, Crexi, or work with a broker for off-market opportunities.
Step 2: Letter of Intent (LOI)
A non-binding agreement outlining key lease terms like rent, term length, and options for renewal.
Step 3: Lease Negotiations
The formal lease document is reviewed by both parties. Key areas of negotiation include: ✔ HVAC maintenance & replacement responsibilities ✔ Personal guarantees (whether a tenant’s personal assets are at risk) ✔ Buildout requests (such as office additions)
Step 4: Signing the Lease & Taking Possession
Before moving in, tenants must: ✔ Pay first month’s rent & security deposit ✔ Provide a Certificate of Insurance ✔ Transfer utilities
Key Takeaways
✔ Leasing is often a better option in a high-interest rate market. ✔ Understand whether you’re signing a Gross Lease or a Triple Net Lease. ✔ Work with a broker to access off-market deals. ✔ Know what’s negotiable in your lease to avoid costly surprises.
At Waypoint Real Estate, we
elp businesses navigate commercial leases with expert guidance. Need help finding the right space? Contact us today!
📞 Call Waypoint Real Estate for expert commercial leasing advice!
Comments