At The Thomas Agency and The Thomas Agency of Georgia, our goal is to assist our clients with saving time and money. Even if you’re not ready to buy a building, you may own a small business and need to expand into your own space. Whether it’s retail or office, you should familiarize yourself with the type of leases in commercial real estate.
The list below provides general information about lease types but is not a comprehensive list. Other parameters and guidelines with relation to tenant costs versus landlord costs are subject to points outlined in the individual lease.
Triple Net (NNN): A lease requiring the tenant to pay the expenses of the property leases, such as taxes, insurance, maintenance, utilities, cleaning, in addition to a fixed rental rate. The terms “net net”, “net net net”, “triple net”, and other such repetitions are used.
Full Service (FLSV): A lease in which the stated rent includes the operating expenses and taxes for the building. Same as a Gross lease. Opposite of Net Lease.
Full Service Except Janitorial (FLSVEJ or FSEJ): A lease in which the stated rent includes the operating expenses and taxes for the building but excludes janitorial. Same as a Gross lease. Opposite of Net Lease.
Gross: A lease in which the stated rent includes the operating expenses and taxes for the building. Same as a Full Service lease. Opposite of Net Lease. This is the least common lease type.
Modified Gross (Mod Gross): A modified gross lease sits somewhere between a Triple Net lease and a Gross lease. Some expenses may be included in the lease. Utilities are most likely paid by the tenant, however, utilities can be combined depending how a building and its utility meters are demise.
If you have specific questions, don’t hesitate to contact us at email@example.com.