Finding a landlord and tenant match in commercial real estate requires a commercial real estate lease type that benefits both. The needs of the landlord are income from rent and the control of costs to assure a profit. The tenant wants to peg their rental costs as closely as possible also. Using the right type of lease, they can both satisfy their needs with a bit of negotiation at times.
Anne Rippy/ The Image Bank/ Getty Images
The gross lease in commercial real estate is sometimes described separately from the full service lease. However, the difference is not great, and most people consider them together. Learn how they are the same, the difference and how the gross commercial lease differs from other commercial real estate lease types.
The triple net lease in commercial real estate requires that the tenant pay a significant share of expenses of operation, as well as all taxes and insurance related to their rental unit. This type of lease helps the landlord by fixing their costs, as their rents are fixed. Tenants aren't fond of this type of lease especially in older properties.
As a compromise between the gross lease and the triple net, the modified net lease is quite helpful in helping landlords and tenants to structure lease terms that work for both. This article gives the details of how they differ from the other lease types.