Final Answer:
In a commercial lease agreement, it is customary for the landlord to bear the costs of property taxes, insurance premiums, maintenance, utilities, and janitorial services. This arrangement allows the landlord to maintain the property's overall condition and functionality, reflecting the distinct nature of commercial leasing. So, the correct option is Option 1 - Commercial Lease Agreement.
Step-by-step explanation:
In commercial real estate, the allocation of expenses between landlords and tenants is typically outlined in the lease agreement. Commercial leases commonly involve a "triple net" (NNN) structure, where tenants not only pay rent but also contribute to additional expenses like property taxes, insurance, maintenance, utilities, and janitorial services. This ensures that the landlord covers these essential costs to maintain the property's viability and attractiveness to tenants.
Mathematically, this is often expressed as Base Rent + NNN expenses, where NNN represents the additional costs mentioned. The landlord's provision of these services and payment of associated costs is a hallmark of commercial leases, emphasizing the difference from residential arrangements. This setup is advantageous for both parties, as it allows the landlord to efficiently manage and maintain the property while providing tenants with a clear understanding of their financial responsibilities beyond rent.
In contrast, residential lease agreements typically involve landlords covering property-related expenses, with tenants mainly responsible for rent and, in some cases, utilities. Sublease agreements involve a tenant leasing part or all of their rented space to another party, but the primary responsibilities often remain with the original tenant.
Lease-purchase agreements are distinct, involving an option for the tenant to buy the property later, and typically don't include the same expense allocations seen in commercial leases. Therefore, the described scenario aligns most closely with a commercial lease agreement.
So, the correct option is Option 1 - Commercial Lease Agreement.