Lease Rates

Commercial and industrial lease rates are typically quoted in terms of annual rent per square foot. A 500 square-foot studio at $15 per square foot translates to an annual rent of $7,500, or $625 per month.

Find out whether the rent covers a gross or net lease. As mentioned previously, under a gross lease you are only responsible for your rent. Under a net lease, however, you will be responsible for your rent plus additional operating expenses -- for examples, utilities, real estate taxes, insurance expenses and CAM. These charges may be referred to in your lease as "TMI" (taxes, maintenance and insurance), or "additional charges.”

Discuss potential additional charges with your landlord. Also, ensure the lease accurately spells out which expenses will be your responsibility, and which expenses your landlord will pay. In a net lease, these costs typically fluctuate on a monthly basis.

Ask the landlord for estimates (usually determined through back statements and bills) of the costs, in order to more accurately determine your total monthly financial commitment and responsibilities.