There are a few different types of leases, but two very common leases are the triple net lease (NNN) and the full-service lease (gross lease). Here is some information about each type, as outlined in the article “The Difference Between Triple Net and Full-service Leases”:
Triple Net (NNN) Lease
In a triple net lease, the tenant pays for three primary net expenses: insurance, taxes, and maintenance. Base rental rates for these leases are usually low, but the unpredictable costs of net expenses can be risky. For instance, repair expenses for the building are divided between all tenants, and these kinds of expenses can be difficult to predict and vary majorly from year to year.
Full-Service (Gross) Lease
In a full-service lease, these basic net expenses are included in the rental rate. As a result, rent is higher, but tenants can more easily budget because they know exactly what the rent will be each month.
There are pros and cons to each type of lease, and it is hard to say which lease is more cost efficient. The key is to determine if your business would rather risk unpredicted costs for an overall lower rent, or pay more but have a stable budget.
If your business is interested in The Difference Between Triple Net and Full-service Leases, give us a call at 913-685-4100 to set up a tour of one of our office suites for rent in Overland Park.