LONDON & STETELMAN
A practical guide to commercial leasing—from deposits and utilities to buildouts and your next offer.
01 / Maintenance
Who pays for maintenance is determined by the lease wording, the maintenance deductible, and the type of maintenance requested. Many of our commercial leases have a deductible that protects the tenant from any unexpected large expenses. This same deductible protects the property owner from overuse of service calls for clogged drains, air filters, etc.
02 / Utilities
Not typically. There are a couple of rare occasions in which the meter situation makes it more practical for the owner to pay for utilities, which would be included in the rent amount. These few properties will be marked under the details section of our Available list.
03 / Deposits
The deposit is typically one-month’s rent, but it certainly depends on the lease situation. In a situation where the Lessee’s credit is subprime, the owner may ask for an additional deposit to mitigate the risk.
04 / Rent
Rent is payable in advance and due on the first day of the month. Many leases provide for a grace period before late charges begin to accrue.
05 / Utility providers
These naturally depend on the location of the subject property. Mississippi Power and Hattiesburg Water service 80% of our units, but if those do not service your property contact your London & Stetelman representative.
06 / Maintenance requests
Please call our office with your maintenance requests: 601-268-8770. If it’s an after-hours request, our answering service will handle the call at the same number. We have an army of contractors at our disposal for maintenance issues.
07 / Lease structure
In a triple-net lease, the tenant pays for taxes, insurance, and common area maintenance for the property [If it is a multi-tenanted building, the tenant will pay for their proportionate share of these items]. If the lease is triple-net, it will be marked as such on our Available List.
08 / Insurance
We require General Liability Insurance for all of our tenants (usually of $1,000,000), listing the Lessor as Additionally Insured.
09 / Rental rates
This is common real estate jargon and the full term is "per square foot per year." To calculate monthly rent, you'd take the given number [$/ft], multiply by the square footage in the unit, and divide it by twelve.
10 / Build-to-suit
This term is used to describe a situation where a property owner has a parcel of land and is looking for a financially strong tenant to sign a lease. With the lease in hand, the owner will construct or renovate the building for the tenant, and the lessee will rent the property back. Because this is usually new construction, "build-to-suit's" are typically premium rental rates and are usually five years or more.
11 / Tenant improvements
Property layouts are generally easy to change, and our owners are typically receptive to tenant improvements. Tenants are welcome to do the work themselves [using licensed contractors], and some owners will offer a "tenant improvement allowance" as an incentive to do so. If the owners do the buildout, they typically divide the cost of the buildout until the lease, less any improvement allowance offered.
12 / Making an offer
You're not always out of luck. I'd recommend giving one of our agents a call, because some owners will consider lower offers and it never hurts to make a run at a property. Sometimes the owners would rather have low rent than no rent, and you certainly won't know if you don't try.
A practical guide to commercial leasing—from deposits and utilities to buildouts and your next offer.
01 / Maintenance
Who pays for maintenance is determined by the lease wording, the maintenance deductible, and the type of maintenance requested. Many of our commercial leases have a deductible that protects the tenant from any unexpected large expenses. This same deductible protects the property owner from overuse of service calls for clogged drains, air filters, etc.
02 / Utilities
Not typically. There are a couple of rare occasions in which the meter situation makes it more practical for the owner to pay for utilities, which would be included in the rent amount. These few properties will be marked under the details section of our Available list.
03 / Deposits
The deposit is typically one-month’s rent, but it certainly depends on the lease situation. In a situation where the Lessee’s credit is subprime, the owner may ask for an additional deposit to mitigate the risk.
04 / Rent
Rent is payable in advance and due on the first day of the month. Many leases provide for a grace period before late charges begin to accrue.
05 / Utility providers
These naturally depend on the location of the subject property. Mississippi Power and Hattiesburg Water service 80% of our units, but if those do not service your property contact your London & Stetelman representative.
06 / Maintenance requests
Please call our office with your maintenance requests: 601-268-8770. If it’s an after-hours request, our answering service will handle the call at the same number. We have an army of contractors at our disposal for maintenance issues.
07 / Lease structure
In a triple-net lease, the tenant pays for taxes, insurance, and common area maintenance for the property [If it is a multi-tenanted building, the tenant will pay for their proportionate share of these items]. If the lease is triple-net, it will be marked as such on our Available List.
08 / Insurance
We require General Liability Insurance for all of our tenants (usually of $1,000,000), listing the Lessor as Additionally Insured.
09 / Rental rates
This is common real estate jargon and the full term is "per square foot per year." To calculate monthly rent, you'd take the given number [$/ft], multiply by the square footage in the unit, and divide it by twelve.
10 / Build-to-suit
This term is used to describe a situation where a property owner has a parcel of land and is looking for a financially strong tenant to sign a lease. With the lease in hand, the owner will construct or renovate the building for the tenant, and the lessee will rent the property back. Because this is usually new construction, "build-to-suit's" are typically premium rental rates and are usually five years or more.
11 / Tenant improvements
Property layouts are generally easy to change, and our owners are typically receptive to tenant improvements. Tenants are welcome to do the work themselves [using licensed contractors], and some owners will offer a "tenant improvement allowance" as an incentive to do so. If the owners do the buildout, they typically spread the cost over the lease term, less any improvement allowance offered.
12 / Making an offer
You're not always out of luck. I'd recommend giving one of our agents a call, because some owners will consider lower offers and it never hurts to make a run at a property. Sometimes the owners would rather have low rent than no rent, and you certainly won't know if you don't try.
