What are common ways for a lease to divide expenses between the landlord and tenant?

The commercial leases allows the tenant and the landlord to divide up expenses in several ways.  Industry jargon is often used to describe common arrangements.  Below are terms and descriptions for common arrangements in commercial leases.  Remember, every thing is up for negotiation in a commercial real estate lease.   

Gross Lease (full service lease) - the landlord pays for all operating expenses, property taxes, and property taxes. 

Single Net Lease – the tenant pays a monthly lump sum base rent as well as the property taxes. The landlord pays for operating expenses and property insurance.  

Double Net Lease (NN) – the tenant pays a monthly lump sum base rent as well as the property taxes and the property insurance. The landlord pays for all other operating expenses of the premises.

Triple Net Lease (NNN) – the tenant pays a monthly lump sum base rent as well as the property taxes, the property insurance, and maintenance. 

Troy Golden is President of Golden Group Real Estate. He received his undergraduate degree from Yale University and his MBA in Real Estate from the Wisconsin School of Business. Troy specializes in commercial office brokerage in Chicagoland. Please contact him at troy@goldengroupcre.com or (630) 805-2463.