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Why is it called a net lease?

The term "net lease" is distinguished from the term "gross lease". In a net lease, the property owner receives the rent "net" after the expenses that are to be passed through to tenants are paid.

What is the most common commercial lease?

Single Net Lease A net lease is perhaps the most common form of commercial lease agreement. With a net lease, the tenant is responsible for a base rent payment, plus additional expenses associated with the property.

What is commercial net rent?

What is a Commercial Net Lease? A Commercial Net Lease is defined as a part of a commercial lease that requires a tenant to pay part or all of the taxes, fees and maintenance costs for a property, in addition to the rent.

What are the 3 types of leasing?

The three most common types of leases are gross leases, net leases, and modified gross leases. The Gross Lease. The gross lease tends to favor the tenant. ... The Net Lease. The net lease, however, tends to favor the landlord. ... The Modified Gross Lease. ... Find the Lease for Your Business.

What type of leases are the most common for office?

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.

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