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Lease Types

There are 3 types of commercial leases: Gross Lease (Full-Service Lease), Net Lease, and Modified Gross Lease, with Triple Net Lease and Modified Gross Lease being the most common.


  • All Inclusive

  • Landlord pays for most all expenses on the property, including:

    • Taxes

    • Insurance

    • Maintenance

  • Excess utility consumption is sometimes charged back to tenant

  • Tenant pays their own insurance and taxes


  • All Inclusive

  • Tenant pays a pro-rated payment of certain expenses, including:

    • Real Estate Taxes

    • Property Insurance Taxes

    • Common Area Maintenance items (CAMS), such as:

      • Janitorial Services

      • Property Management Fees

      • Sewer

      • Water

      • Trash Collection

      • Landscaping

      • Parking Lots

      • Fire Sprinklers

      • Any Commonly Shared Area or Service

  • 3 variations of the net lease:

Single Net Lease (N Lease)

  • Tenant pays base rent plus a pre-rated share of the property tax

  • Tenant also pays for individual utilities and janitorial services

  • Landlord covers all other building expenses

Double Net Lease (NN Lease)

  • Tenant is responsible for base rent plus a pro-rata share of property taxes and insurance

  • Landlord covers expenses for repairs and common area maintenance

  • Tenant is responsible for their own janitorial and utility expenses

Triple Net Lease (NNN Lease)

  • Tenant pays base rent plus all or part of:

    • Taxes

    • Insurance

    • CAMS

  • Tenant pays the costs of janitorial services, utilities, their own insurance and taxes

  • Lease fluctuates from month-to-month as operating expenses increase or decease


  • Rent is requested in one lump sum and includes:

    • Property Taxes

    • Insurance

    • CAMS

  • Tenant pays the costs of janitorial services and utilities

  • Tenant pays fixed amounts for certain services on top of rent for the actual lease space

  • Gross Up: If the building is less than 90-95% occupied, then expenses are still calculated for the tenants pro-rated share of operating expenses

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