Commercial Leases

A commercial lease structure where the tenant pays base rent plus three property expenses: property taxes, building insurance, and common area maintenance (CAM). “Triple net” means net of taxes, insurance, and maintenance, shifting most operating costs from the landlord to the tenant. The base rent is usually lower than a gross lease, but total occupancy cost can be higher and can fluctuate as those pass-through expenses change.

A commercial lease where the tenant pays a fixed base rent plus certain agreed operating expenses, sitting between a full gross lease (landlord pays most costs) and a triple net lease (tenant pays taxes, insurance, and maintenance). The tenant might cover utilities or janitorial service while the landlord handles taxes and major maintenance. Key terms like the base year and expense stop define how rising costs get split over time.

A legally binding contract that grants a business the right to use a property for commercial purposes, such as retail, office, or industrial use, in exchange for rent. It is typically longer, more complex, and more negotiable than a residential lease, covering rent structure, lease type, escalation clauses, and maintenance responsibilities. Common structures include gross, modified gross, and triple net (NNN) leases, which determine how costs are split between landlord and tenant.