There are several different types of commercial real estate leases, which are used in different contexts and involve different types of rent. These types of commercial leases can be overlapping. The category distinctions are not as important as paying attention to how the rents and other fees are calculated for each type of lease. Here is a list of different types of leases with a little information about each:
- Percentage Lease – base rent + percentage of monthly sales. This type of lease is most often used in retail businesses or malls.
- Net Lease – in addition to rent, tenants pay part of or all of the insurance, taxes, or maintenance costs. This is often used in any commercial lease, and it usually favors the landlord’s interests.
- Double Net Lease – rent + taxes and insurance. This is also most commonly used in any commercial lease and usually favors the interests of the landlord.
- Triple Net Lease – rent + taxes, maintenance, AND insurance. This can be used in any commercial lease and typically favors the landlord’s interests.
- Fully Serviced Lease (Gross Lease) – landlord pays most or all of the usual costs, which are often passed on to the tenant in their rent in the form of a “Load Factor.”
Be sure to know what kind of lease you are being offered and what that will mean for your rent!
If you are looking into executive office rental in Overland Park, give a Southcreek commercial real estate broker in Overland Park a call at 913-685-4100 to find out about our available office spaces for lease!