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5 Different Types Of Commercial Real Estate Leases, Explained
- Full-Service Lease/Gross Lease Signing a full-service lease (also called a gross lease) means you are responsible for paying the base rent.
- Net Lease A net lease refers to a category of commercial real estate leases.
- Modified Gross Lease
- Absolute NNN Lease
- Percentage Lease
- Negotiation Tips and Exceptions
- Commercial Lease Type Chart
www.squarefoot.com/leasopedia/different-types-of-commercial-leases/- People also ask
Percentage leases require tenants to pay a base rent in addition to a percentage of gross business sales (once sales pass a threshold). Landlords often ask for seven percent. Be wary if one asks for 10 or 12 percent. Retail mall outlets typically have these types of commercial real estate leases. One upside of … See more
Signing a full-service lease(also called a gross lease) means you are responsible for paying the base rent. Generally, the landlord handles the additional building expenses, including maintenance fees, insurance, and real estate taxes. Typically, this results in … See more
A modified gross lease occupies the middle ground between a gross lease and a triple net lease. In general, a modified gross lease means that the tenant pays base rent, utilities, and a portion of operating costs. The details vary from contract to contract. … See more
A net lease refers to a category of commercial real estate leases. Net leases usually stipulate that tenants pay a proportionate share … See more
Sometimes people incorrectly use the terms “absolute NNN lease” and “triple net lease” interchangeably. They are not, however, the same. Usually, triple net leases require tenants to pay for some or all building repair expenses (such as structural repairs or … See more
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WEBApr 19, 2024 · Commercial lease types. Gross lease / full-service lease. Net lease. Absolute net lease or “absolute NNN lease” Modified gross lease. Percentage lease. 4. …
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