Lease Types
The rent amount and type that the tenant (lessee) will be
responsible to pay to the landlord (lessor) throughout the lease term is
negotiated prior to both parties signing a lease agreement. The rent type will
vary depending upon the services provided.
Full Service: A rental rate that includes normal building
standard services as provided by the landlord within a base year rental.
Double Net (NN): Tenant pays for only two of the building
expenses; the landlord and tenant determine the specific expenses prior to
signing the lease agreement.
Triple Net (NNN): A lease in which the tenant is responsible
for all expenses associated with their proportional share of occupancy of the
building.
Modified Gross: General type of lease rate where typically
the tenant will be responsible for their proportional share of one or more of
the expenses. The landlord will pay the remaining expenses. See the below list
of common Modified Gross rental rate structures:
- Plus
All Utilities: A type of Modified Gross Lease where the tenant is
responsible for their proportional share of utilities in addition to the
rent.
- Plus
Cleaning: A type of Modified Gross Lease where the tenant is responsible
for their proportional share of cleaning in addition to the rent.
- Plus
Electric: A type of Modified Gross Lease where the tenant is responsible
for their proportional share of the electrical cost in addition to the
rent.
- Plus
Electric & Cleaning: A type of Modified Gross Lease where the tenant
is responsible for their proportional share of the electrical and cleaning
cost in addition to the rent.
- Plus
Utilities and Char: A type of Modified Gross Lease where the tenant is
responsible for their proportional share of the utilities and cleaning
cost in addition to the rent.
- Industrial
Gross: A type of Modified Gross lease where the tenant pays one or more of
the expenses in addition to the rent. The landlord and tenant determine
these prior to signing the lease agreement.
Tenant Electric: The landlord pays for all services and the
tenant is responsible for their usage of lights and electrical outlets in the
space they occupy.
Negotiable or Upon Request: Used when the leasing contact
does not provide the rent or service type.
TBD: To be determined; used for buildings for which no rent
or service type is known, commonly utilized when the buildings are not yet
built.