The most common question we are asked by tenants is, “what are all these different lease types and what do they mean?” In leasing commercial real estate there are many different types of leases with often times large costs that a tenant is responsible for.

The list below provides general information about lease types but is not a comprehensive list. Always look to the actual language in your lease for the details of what you are required to pay.

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: A lease in which the stated rent includes the operating expenses and taxes for the building. These most often are used in office buildings and include janitorial services. Same as a Gross lease. Opposite of Net Lease.

Full Service Except Janitorial: 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. These are more common with smaller spaces where operating costs are more difficult to define by suite.

Modified 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 demised

If you have a question on what type of lease might be right for you and your company, feel free to contact Drew Whitz, your local tenant specialist. Drew is solely focused on finding the right lease at the right price for his clients. You can reach Drew at drew@rcgmichigan.com or 616-915-0806