What’s the difference between a Gross Lease, Modified Gross Lease, and Triple Net Lease?
Category:
Commercial Leasing – Tenants & Owner-Users
Under a Gross Lease, many operating expenses are generally included within the rent. A Modified Gross Lease typically shares certain expenses between the landlord and tenant. Under a Triple Net (NNN) Lease, tenants generally pay base rent plus their share of specified operating expenses.
Every lease is negotiated individually, making it important to understand exactly which expenses are included—and which are not.
Comparing lease proposals based only on rental rates may create an inaccurate picture of the true occupancy cost.