Commercial Lease Types
Expense Pass Through
Gross Lease: A lease in which the tenant pays a fixed rental amount for the duration of the lease and the landlord pays the expenses associated with owning the property such as taxes and insurance.
Net Lease: A lease in which the tenant pays, in addition to rent, maintenance and operating expenses such as real estate taxes, insurance premiums, etc.
Triple-net Lease: A lease in which the tenant pays, in addition to rent, all expenses related to the operation of the property.
CAM: Common Area Maintenance charges paid by the tenant for the upkeep of areas designated for the use and benefit of all tenants.
Rent Escalation
Index : The rental amount adjusts according to changes in a price index, commonly the consumer price index.
Step Up: the rental amount increases by a preset rate at perdetermined intervals.
Percentage Rent: The additional rent (over a base amount) paid by tenants to owners based on tenant sales over a specified dollar amount.
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