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Commonly Asked Questions about Commercial Real Estate Lease Agreements

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.
Benefits of a Triple Net Lease The most obvious benefit of using a triple net lease for a tenant is a lower price point for the base lease. Since the tenant is absorbing at least some of the taxes, insurance, and maintenance expenses, a triple net lease features a lower monthly rent than a gross lease agreement.
A triple net lease, also known as an NNN Lease, is a lease in which the tenant agrees to pay their pro-rata share of all expenses associated with property maintenance, taxes, and insurance, in addition to a predetermined base rental rate. These expenses are commonly referred to as operating expenses.
NNN Triple Net This type of lease rate includes the base rental rate plus the three Ns. One N stands for property taxes, one for property insurance, and the final N stands for common area maintenance (CAMs).
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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.
Gross leases tend to benefit the tenant, whereas net leases are more landlord friendly. In a gross lease, the tenant has more control over how much is spent on such expenses as janitorial services and utilities.
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.