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- The three main types of commercial leases are12:
- Gross lease: Tenant pays rent and utilities, landlord pays all operating expenses.
- Net lease: Tenant pays rent, utilities, and some building operating expenses, landlord pays the rest of the operating expenses.
- Percentage lease: Tenant pays a base amount of rent and a percentage of their revenue at the commercial premises on top of this.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.The three main commercial leases are gross, net, and percentage leases. Each type of lease requires you to pay rent with varying additional payments as necessary. For example, if you have a percentage lease, your rental amount will be a base amount, and then you will pay a percentage of your revenue at the commercial premises on top of this.
legalvision.co.uk/commercial-lease-property/types-…Commercial Lease Type Chart Type of Commercial Lease Tenant Pays Landlord Pays Defining Features Full Service/Gross Lease Rent + utilities All operating expenses Tenants receive one bill but can incur a ... Net Lease Rent, utilities + some building operatin ... The rest of the operating expenses (if . ... 3 types of net leases: Triple/“NNN”, Dou ... Triple Net Lease (“NNN”) Rent, utilities +...
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A net lease refers to a category of commercial real estate leases. Net leases usually stipulate that tenants pay a proportionate share of the building’s operating expenses: common area maintenance (referred to as CAM) fees, property taxes, and insurance. Types of net leases include triple, double, and single. Each … 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
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
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
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 … See more
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