Gross Lease (Full-Service Lease)
You pay a fixed rent, and the landlord covers most or all operating expenses such as property taxes, insurance, and maintenance.
Best for: Predictable budgeting with minimal additional charges.
Modified Gross Lease
Similar to a gross lease, but you may share certain expenses (like utilities or janitorial services) with the landlord.
Best for: Tenants who want more control over specific costs while still keeping rent relatively predictable.
Net Lease
You take on more responsibility for operating costs.• Single Net Lease (N): Rent plus property taxes.• Double Net Lease (NN): Rent plus taxes and insurance.• Triple Net Lease (NNN): Rent plus taxes, insurance, and maintenance.
Best for: Tenants seeking lower base rent and willing to manage more expenses.
Percentage Lease
You pay a base rent plus a percentage of your gross sales (often used in retail).
Best for: Retail businesses in high-traffic areas with variable revenue.