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Do you know what type of commercial lease you have on the building or space you are leasing?

4/20/2021 (Permalink)

Do you know what type of commercial lease you have on the building or space you are leasing?

There are several different types of commercial leases. The type of lease you signed dictates what you as the tenant are responsible for and what the landlord is responsible for.

Your commercial lease should be read carefully before signing. Some of the different types of commercial leases and what you should look for are listed below.

  • Gross Lease – You pay the rent; all operating expenses are paid by the landlord of the building but they may recoup their cost with “Load Factors” in the rent.
  • Modified Gross Lease – You pay the rent and a percentage of the buildings annual operating expenses. Modified Gross Lease contracts can vary greatly.
  • Triple Net Lease – You pay the rent, the taxes, insurance and all maintenance fees.
  • Double Net Lease – You pay the rent, the taxes and insurance.
  • Net Lease – You pay the rent, some portion of the taxes, insurance and maintenance fees.
  • Absolute Lease -You pay the rent, all building expense (Taxes, insurance, maintenance), you also pay roof and structural repairs. This lease type is usually for long term leases.
  • Percentage Lease – You pay the rent and a percentage of your monthly sales. This lease type is for retail sales.
  • Single Net Lease – You pay the rent and property taxes.

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