Triple Net
I am leasing a commercial space which includes triple net payments.
The lease states that we pay 10% & a "proportionate" amount based on leased square footage.
There are a total of 15 stores, 15 actual retail locations and the landlords space which totals 7500 sqft for his business office and warehouse.
We are paying 10% of the total triple net charges, which the landlord states is one tenth of the total of retail operations (each store is 1500 square feet) but he does not include his square footage in the triple net, 7500 sqft. He states that it is warehouse space and is not included as "rentable" space and is therefore not included. We disagree. We live in New Jersey.
Are we right or wrong?
Any assistance would be appreciated.
We also own commercial property in New Jersey but ours is office space.
Thank you for your reply.
The wording in the lease states " the tenants "proportionate" share of of the entire premises".
But next to the paragraph heading it states 10%.
For example, under "Section 2.02 Cost of Operation = 10%".
Which is the "legal" one?
Is it the 10% of entire premises of 22.500 square feet (15 retail stores plus his 7500 sqft) or
Proportionate Share, a percentage (not 10%) of the entire premises?
Thanks again for your reply