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A commercial lease runs longer, shifts more obligations onto the tenant and is priced on a different basis. It is a separate conversation, not a variant of residential.
What actually changes
A commercial lease commonly runs several years and frequently makes the tenant responsible for maintenance, insurance and a share of operating costs. That inverts most of what residential management assumes.
So the management scope narrows in some places and widens in others: less day-to-day repair coordination, far more lease administration, cost recovery and compliance tracking across the term.
Which is why it is quoted per property on scope rather than from a published percentage. The residential fee ranges do not transfer, and pretending they do produces a quote that is wrong in both directions. See retail and office.
Taking on commercial
Term, renewal options, obligations and cost recovery, mapped before anything is quoted.
What the tenant carries, what the landlord carries, and what falls to management.
Priced against that scope rather than a percentage lifted from residential practice.
Renewals, escalations, recoveries and compliance tracked across years rather than months.
Where the risk sits
A multi-year lease with a solid covenant is the most stable income in property. Turnover is rare, the placement cost amortises across years, and vacancy between tenancies is the exception.
The reverse is also true. A commercial vacancy can run for months because the pool of suitable tenants is small, and the fit-out expectations of the next one may be substantial.
That asymmetry is why tenant quality matters more here than anywhere, and why covenant assessment at the start is worth disproportionate attention. Portfolio owners usually weight it accordingly.
Commercial types
Each carries a different lease shape.
Storefronts and suites, and what a landlord still carries.
Learn moreMulti-residential, priced per door.
Learn moreFurnished and nightly, priced on booking revenue.
Learn moreHow commercial compares with residential.
Learn moreCommercial, answered
The questions that separate it from residential.
Small commercial unit with a net lease. They handled the CAM reconciliation with the tenant and the numbers were accepted without dispute.
They quoted the commercial unit separately from my residential ones and explained why. The fee structure fit the lease type.
Tenant improvement work was coordinated with the contractor and the lease terms, and the rent commencement date held.
The lease renewal was negotiated with the market data in front of both sides. Tenant stayed, rent adjusted fairly.
From the blog
Commercial owners
The leases are read first, obligations mapped, and the quote built against the actual scope rather than a residential percentage.
Leases read first · Quoted on scope · One proposal per property