Dec
23
What are the different lease types when renting commercial property?
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2 Comments
June 7th, 2009 at 5:46 pm
That is a triple net lease, where the tenant takes on virtually all the costs of land ownership, so the landlord just takes the money to the bank and does not worry about it.
June 10th, 2009 at 4:19 pm
To expand on the previous answer, a triple net lease means that you pay rent plus your proportionate share of the costs of maintaining the shopping center (or building), the real estate taxes and the landlord’s insurance. So if you are renting 33% of the building you are paying rent plus 33% of the landlord’s maintenance costs, 33% of the real estate taxes and 33% of the landlord’s insurance bill. Maintenance costs usually include things like electricity, snow removal, cleaning, etc.