When leasing an office, retail space, restaurant, or industrial space, landlords (or lessors) have a number of different issues to keep in mind, including:
Property Specifications: It is up to the landlord to ensure that commercial use is permitted on the property and the property will satisfy the specific type of commercial use for the tenant's activities. For example, one generally cannot operate a restaurant in an office type building unless very specific building codes and bylaws have been satisfied.
Property Use: The landlord must decide and permit how the tenant will use the property for their business. The tenant needs to specify what type of business they will be running (real estate, finance, etc.).
Exclusive Use: The landlord must choose if the tenant will be allowed exclusive use, which means the tenant would be the only party in that building to conduct their type of business. An example would be only allowing one coffee shop in the strip mall.
Lease Terms: Commercial lease terms may follow a weekly, monthly, yearly, or longer term that may either be on a fixed renewal or a periodic tenancy.
Operating Costs and Utilities: The tenant can either pay a percentage of the utilities and operating costs, or a fixed rate on top of their rent. It is up to the landlord to choose the cost distribution, and whether the tenant will pay the landlord or if the tenant will pay the utility companies directly.
Taxes: Some landlords require that the tenant pays a share of the property tax. The amount, whether it will be a percentage or a fixed portion, is up to the landlord.
Parking: When parking is available, it may either be free, included in the rent, or charged as an additional fee.
Improvements: Sometimes a tenant will require that certain improvements be made to the property in order to assist them in properly conducting their day-to-day business. A landlord needs to approve these changes and, depending on what they are, pay for and complete them. Improvements can transfer to the tenant at the end of the lease and generally depreciate in value during the term of the lease.