Different Types of Commercial Real Estate Leases

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Types of Commercial Real Estate Leases
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Different Types of Commercial Real Estate Leases
is Helpful.

• The owner of the building a single
  owner/investor,
• A Group of People,
• An REIT, or a Commercial Real Estate

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The Four Commercial Real Estate Leases
Single-net lease The tenant is in charge of
paying rent and property taxes.
Double-net lease The tent pays for rent,
insurance and property taxes.
Triple-net lease The tenant pays for rent
insurance, property taxes and maintenance.
Gross lease The tenant pays just for rent while
the landlord/owner pays for the rent insurance,
property taxes and maintenance.
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The Triple Net (NNN) Commercial Real Estate Lease
is The Most Popular

• Triple net (NNN) commercial real estate lease
  offers regular, long-term income with less risk
  for owners and investors.
• Triple-net lease investments can include a
  commercial property such as an office building,
  industrial park, a free-standing building
  occupied by restaurants, pharmacies and banks or
  a shopping mall.
• The lease lasts 10 to 15 years and rent goes up
  annually at a set rate.
• Tenants also like Triple-net leases because they
  usually pay less rent as they take on
  responsibility.

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Residential V/s Commercial real estate leases

• Commercial real estate leases

• Residential real estate leases

• Price quoted is based on tenant occupancy of any
  property space over a specific time, usually
  quoted in terms of rental dollars for each square
  foot.
• Commercial real estate leases can run one to ten
  years. Many offices and retail spaces rent out
  commercial property for five year leases or ten
  year leases at a time.

• Residential real estate is quoted in terms of a
  monthly fee (rent) or as an annual fee.
• Residential leases start often at six months and
  typically run for a year.

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