What Are Leases in Commercial Real Estate?

Commercial leases are contracts outlining terms between landlords and tenants. There are several lease types in CRE.

Common Lease Types:

Gross Lease: The tenant pays a fixed rent, and the landlord covers expenses like taxes and maintenance.
Net Lease: Tenants cover rent plus additional costs:
- Single Net (N): Tenant pays property taxes.
- Double Net (NN): Tenant pays taxes and insurance.
- Triple Net (NNN): Tenant pays taxes, insurance, and maintenance.
Percentage Lease: Tenants pay a base rent plus a percentage of their business revenue.

Key Tips:

Understand each lease type’s financial implications before signing.

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