3 Types of Commercial Real Estate Leases


3 Types of Commercial Real Estate Leases


A commercial leases can seem daunting, especially since they’re a long-term commitment that can cost a lot of money.

But, they’re not as complicated as many think. There are three categories of leases when it comes to commercial real estate: Gross Lease (also known as Full Service Lease), Net Lease, and Modified Gross Lease. The main similarity among these leases is that they all provide a base rent with variations around who pays for which operational expense.

 

Here`s a breakdown of the different types of leases, and what they mean for both tenants and landlords:

  • Gross Lease/Full Service Lease

  • Net Lease
    • Single Net Lease:
    • Double Net Lease:
    • Triple Net Lease:
    • Absolute Triple Net Lease:

  • Modified Gross Lease/Modified Net Lease


   ...more

RSK: Just a quick review of the basic CRE leases. I think in our market a modified gross is most common and absolute triple net the least.

Ken Notes: Do not forget you can search CirexNews for past articles... So a nice primer could be had by searching for commercial lease for example....

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- - Volume: 6 - WEEK: 16 Date: 12/3/2021 6:11:41 PM -