9/27/2023 0 Comments Lower monthly expensesThe tenant (you) agrees to pay for not only the fees for rent and utilities but also all of the commercial property’s operating expenses, such as maintenance fees, building insurance, and property taxes. Let’s dive into the specific types of net leases that you’ll see when renting commercial space.Ī triple net lease is essentially the opposite of a gross lease. What to know: The specific percentage will be stipulated in the lease.Landlord pays: The other part of the expenses (if applicable). Tenants pay: Rent and utilities plus a proportionate share of the building’s operating expenses-property taxes, insurance, and maintenance.They then divide that sum among tenants based on the percentage of the building occupied by each tenant. In commercial real estate, landlords typically calculate each tenant’s pro-rata share of operating expenses like this: They take the total operating cost per square foot for all rentable space in the building. ![]() Each type of net lease has its own level of financial obligation that the landlord passes onto the tenant. Types of net leases include triple, double, and single. Net leases usually stipulate that tenants pay a proportionate share of the building’s operating expenses: common area maintenance (referred to as CAM) fees, property taxes, and insurance. Most commonly, in properties occupied by multiple tenants, like office buildings.Ī net lease refers to a category of commercial real estate leases.
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