South Dakota Commercial Lease Agreement
A South Dakota commercial lease agreement is a form used in real estate for renting out a property to a person or company that will use it for business purposes. The average lease length is three (3) to five (5) years, although they can be negotiated to any length of time. As a general rule of thumb, the longer the lease, the lower the rent the landlord or property manager will typically charge.
Where the property is located determines its zoning. For example, retail business zoning can typically be closer to residential areas, whereas industrial zoning will typically be further from homes. Commercial lease contracts typically come in three (3) types: triple net (NNN), gross, and modified gross. These three types pertain to what utilities the tenant will be responsible for, and can highly impact how affordable/desirable the rental is for prospective tenants. Once the parties write their signatures onto the lease, it becomes official, only expiring until the lease duration is up or it is terminated for an unexpected reason.