Here at Lisamarie Wand Group we are transparent with the information we hold and we guide our clients best we can. There are several types of CRE leases that are commonly used. The type of lease you choose will depend on your business’s needs and the landlord’s preferences. Here are some of the most common types of commercial leases:
Gross Lease (Full-Service Lease): In a gross lease, the tenant pays a fixed amount of rent, and the landlord covers all operating expenses, including property taxes, insurance, maintenance, and utilities. This type of lease simplifies the payment structure for the tenant.
Net Lease: In a net lease, the tenant pays a base rent plus a share of certain operating expenses. The specific type of net lease determines which expenses the tenant is responsible for. Common variations include:
- Single Net Lease (N Lease): The tenant pays base rent plus a share of property taxes.
- Double Net Lease (NN Lease): The tenant pays base rent plus a share of property taxes and insurance.
- Triple Net Lease (NNN Lease): The tenant pays base rent plus a share of property taxes, insurance, and maintenance costs.
- Absolute Triple Net Lease (NNN Lease): The tenant is responsible for all operating expenses, including property taxes, insurance, maintenance, utilities, and repairs.
Percentage Lease: This type of lease is commonly used in retail spaces, especially in shopping centers or malls. In a percentage lease, the tenant pays a base rent plus a percentage of their gross sales. This arrangement allows the landlord to benefit from the tenant’s business success.
Modified Gross Lease: A modified gross lease combines elements of both gross and net leases. The tenant pays a base rent that includes some or most of the operating expenses, while the tenant is responsible for other expenses separately. This type of lease offers flexibility in dividing the costs between the landlord and tenant.
Ground Lease: In a ground lease, the tenant leases only the land from the landlord and constructs their own building or structure on the property. Ground leases are typically long-term leases, often spanning several decades. The tenant is responsible for the construction, maintenance, and other costs associated with the building.
Short-Term Lease: A short-term lease typically has a duration of one year or less. These leases offer flexibility for both the tenant and landlord, as they allow for shorter commitment periods or temporary arrangements.
At Lisamarie Wand Group it’s important to carefully review and negotiate the lease terms. We are experienced lease negotiators. We strive to effectively negotiate with the landlord or their representative to ensure the most favorable terms for our clients. We hope this helps you and if you have any questions reach out to our team!
For more information contact:
Lisamarie Wand Group – Commercial Real Estate and Business Broker Experts
Mohr Partners, Inc
1325 Airmotive Way, #276
Reno, Nevada 89502
O: 775.224.5300
info(at)lisamariewand(dotted)com