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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.
The gross commercial lease is used most often in multi-tenant and single tenant office buildings, industrial and some retail properties.
There are different types of leases, but the most common types are absolute net lease, triple net lease, modified gross lease, and full-service lease. Tenants and proprietors need to understand them fully before signing a lease agreement.
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.
Percentage leases are most commonly used for retail properties (especially malls). In a percentage lease, tenants pay a base rent plus a portion of the gross sales they make from conducting business in the building.