(281) 312-0700562 Kingwood Drive, Suite 15, Kingwood, Texas 77339
(281) 312-0700You can receive more information in one of the three ways listed below:
By phone: (281) 312-0700
Website: Review our Property Leasing section
Send an email to jeff@kingwoodleasing.com
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What Are the most Common Types of Commercial Leases? |
What Are the Most Common Types of Commercial Leases?
If you are in the market for obtaining an office for your business there are some basic types of leases that you should be familiar with. Every landlord has their own type of lease that they like to use and the annual cost of different leases can vary widely so it is important for you to understand each leasing structure when you are comparing different offices for your needs.
Gross or Full Service Leases
This type of lease is most commonly used in multi-tenant office buildings. Most often the tenant would be charged an all-inclusive rate that includes the base rent and all building operating costs such as insurance, janitorial services and maintenance charges. These leases will usually have a clause where the lease will be increased on an annual basis based on the consumer’s price index which is usually an additional 1.5% to 3%.
Modified Gross Leases
A Modified Gross lease will include some of the buildings operating expenses but usually not all of them. For example, the tenant may be responsible for paying their own electricity and the landlord will pay all of the other operating cost. These costs can add up quickly so it is very important to know what you are responsible for when executing a lease.
Triple Net Leases
This lease is most commonly found in retail or industrial use or in new office developments. The tenant will be charged a base rent plus their proportional allocation of property taxes, insurance, utilities and expenses for all maintenance. This lease type is the most expensive type of lease for a tenant.
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