Gross Lease:
A Gross Lease is one in which the tenant pays a fixed rent. The landlord is responsible for paying all property expenses, such as taxes, insurance, utilities, and repairs.
Net Lease:
A Net Lease is one in which the tenant pays a prorated share of some or all operating expenses and taxes in addition to base or minimum rent.
Pass-Through Charges:
Pass-Through charges are operating expenses. Each extra “net” requires the tenant to pay for more operating costs.
Net-Net:
A Net-Net (or double-net) lease means that the tenant pays real estate taxes, insurance, and possibly utilities and special assessments.
Net-Net-Net:
A Net-Net-Net (NNN or triple-net) lease means that the tenant pays a prorated share of all operating expenses: taxes, insurance, utilities, and maintenance. In net leases, the pro-rata share is usually based on square footage and is estimated at the beginning of the year, then divided by 12.
Lease:
The Lease can be defined as a written contract for the conveyance of occupancy rights for part or all of an owner or landlord’s property for a stipulated period of time in consideration of the payment of rent or other compensation by the tenant. The lease is a lefally binding contract that outlines each party’s obligations and responsibilities to the other party.