Commercial Leases

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Commonly Asked Questions about Commercial Leases

What does nnn mean in a lease?

Primary tabs. Triple net lease (NNN) is normally a commercial lease where the lessee pays rent and utilities as well as three other types of property expenses: insurance, maintenance, and taxes.

What type of lease is most often used in industrial complexes?

The landlord is still responsible for other expenses, including maintenance, repairs, and property management. Double net leases are often used in industrial or warehouse spaces, where the landlord wants to reduce operating expenses and the tenant wants the security of a fixed monthly rent payment.

What is the most common lease?

Gross Lease Gross leases are most common for commercial properties such as offices and retail space. The tenant pays a single, flat amount that includes rent, taxes, utilities, and insurance. The landlord is responsible for paying taxes, utilities, and insurance from the rent fees.

What form of lease is generally utilized for industrial properties?

An Industrial Gross Lease is a type of lease often used in industrial real estate transactions. It splits some of the operating expenses between the tenant and the landlord. Base Rent: The tenant pays a base rent.

What is the most popular type of lease?

Net leases A triple net lease, sometimes known as an NNN lease, is the most common type of commercial lease. A triple net lease is a lease whose monthly rent fee does not include operating expenses. Typical operating expenses include insurance, utilities, property taxes and maintenance costs.

What type of lease is most common in industrial?

Full-service: the tenant is only responsible for the rent. The landlord covers all other costs associated with the property. This is the most common type of industrial lease. It provides the most protection to tenants.

Who pays property taxes on a commercial lease in California?

In a single net lease, the tenant pays their rent, plus a share of the property tax burden. Theyre also responsible for the utility costs, maintenance, and other fees associated with their individual unit.

What are the types of leases?

A Comprehensive Guide on Different Types Of Leases Finance Lease. Operating Lease. Leveraged Lease. Conveyance Leases. Sale Leaseback. Complete Non Pay Out Lease. Specialized Service Lease. Net Non Net Lease.