There are several different types of commercial leases, including:
- Gross lease: Under a gross lease, the tenant pays a fixed amount of rent each month, and the landlord is responsible for all operating expenses, such as utilities, taxes, insurance, and maintenance.
- Net lease: In a net lease, the tenant pays a lower base rent, but is responsible for a portion of the operating expenses, such as property taxes, insurance, and maintenance.
- Triple net lease (NNN): A triple net lease is similar to a net lease, but the tenant is responsible for all operating expenses, including property taxes, insurance, and maintenance.
- Percentage lease: Under a percentage lease, the tenant pays a base rent plus a percentage of their sales revenue.
- Modified gross lease: A modified gross lease is a combination of a gross lease and a net lease, where the tenant pays a fixed amount of rent plus a portion of the operating expenses.
- Ground lease: A ground lease is a type of lease where the tenant rents the land from the landlord and is responsible for building and maintaining any structures on the land.
- Short-term lease: A short-term lease is a lease agreement that lasts for a short period of time, typically less than a year.
- Long-term lease: A long-term lease is a lease agreement that lasts for several years, often with an option to renew at the end of the lease term.
Each type of commercial lease has its own advantages and disadvantages, and the type of lease that is best for a particular business will depend on a variety of factors, including the business's financial situation, the type of property being leased, and the landlord's preferences.
