What kind of leases should I need to be familiar with when evaluating commercial space?

The most common types of commercial property leases are shown below. Each lease type has different requirements for the landlord and tenant.

  • Full Service or Gross Lease: The rent is all-inclusive. Tenants can expect the landlord to pay for expenses which are associated with the property (for example, taxes, insurance, and maintenance). Janitorial and utilities services are included in Full-Service leases as well.
  • Net Lease: The landlord charges a lower base rent for the commercial space, plus some or all of the “typical” operations or maintenance expenses. Tenant expenses in these leases may include real estate taxes, property insurance, and common area maintenance (CAM).