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Commercial leases are leases which usually apply to premises used for warehousing, industrial or office spaces. A retail lease applies to premises which are used for the selling of goods such as a restaurant.
And, how the most common retail leases are structured:Single net lease. A single net lease, or net lease, is an arrangement where the tenant pay for utilities and property taxes.Double net or NN lease. A double net or NN lease is similar.Triple net or NNN lease.Full-service gross or modified lease.
I mentioned that gross leases are the most common lease type among consumer-facing types of real estate, but they are often used for other property types, for which buildings are shared among multiple tenants. A gross lease is often referred to as a full-service lease in commercial applications.
A retail lease is usually granted for premises where the permitted use of the premises is predominantly for the sale and supply of goods and/or services. Retail leases are structured and are regulated (in Victoria) by the Retail Leases Act (Vic) 2003 (the Act).
A Triple Net Lease (NNN Lease) is the most common type of lease in commercial buildings. In a NNN lease, the rent does not include operating expenses. Operating expenses include utilities, maintenance, property taxes, insurance and property management.