As a commercial lease tenant, it’s essential to understand all the details of your lease agreement. One crucial factor that often gets overlooked is the rate you are paying per kilowatt-hour (kWh) in a triple net setting. Here’s why you should ask about this rate and what it means for your business.
Triple Net Lease Terms
Triple net leases are a common type of commercial lease in which the tenant is responsible for paying their share of the property’s operating expenses. These expenses typically include property taxes, insurance, and maintenance fees. In addition to these costs, tenants may also be responsible for paying for their energy usage, which is where the kWh rate comes into play.
When signing a triple net lease, many tenants assume that their energy costs will be straightforward and transparent. However, this is not always the case. Without knowing the kWh rate, it can be challenging to predict your monthly energy expenses accurately. This can lead to unexpected and potentially expensive surprises down the line.
Asking about the kWh rate in a triple net setting is crucial because it allows you to understand and budget for your energy expenses accurately. It also gives you the opportunity to negotiate a better rate if you feel that you are being charged too much.
Here are a few additional reasons why it’s essential to ask about the kWh rate in a triple net setting:
1. Energy costs can fluctuate: The cost of energy can fluctuate depending on a variety of factors, including demand, supply, and time of day. Knowing the kWh rate can help you anticipate and budget for these fluctuations.
2. It affects your bottom line: Energy costs can be a significant expense for many businesses. By knowing your kWh rate, you can take steps to reduce your energy usage and save money.
3. It can impact your sustainability goals: If your business has sustainability goals, knowing your kWh rate can help you track and reduce your energy usage. This can help you achieve your sustainability targets while also saving money.
4. It can help you make informed decisions: Knowing your kWh rate can help you make informed decisions about your energy usage. For example, if you are considering purchasing new equipment, knowing your kWh rate can help you estimate the energy costs associated with running that equipment.
In conclusion, as a commercial lease tenant in a triple net setting, it’s important to ask what rate you are paying per kWh. Doing so can help you budget accurately, negotiate a better rate, and make informed decisions about your energy usage. It can also help you achieve your sustainability goals and save money in the long run. Don’t overlook this important detail in your lease agreement – ask about your kWh rate today. Contact Us today so we can get you the best rate and keep you knowledgeable about your business energy needs and market.
