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Understanding Types of Office Leases

Feb 11, 2021 | Office Real Estate

Every commercial lease is unique. There are many different types of leases you may encounter when looking for office space. And even within the broad categories of lease types – the devil is always in the details. A Landlord may use terms like “operating expenses,” “CAM (common area maintenance,” “all third party expenses”, etc; which typically include real estate taxes, insurance, snow plowing/lawn maintenance and may or may not include repairs.

Again, since every lease is unique, what is important is that you fully understand what expenses you will be responsible for and what expenses the Landlord will pay.

In General, the broad categories of lease types include:

Full Service Gross Lease – Tenant pays flat rental amount and Landlord covers all operating expenses and utilities

Gross Lease – Tenant pays flat rental amount + utilities and Landlord covers all operating expenses

Modified Gross Lease – Tenant pays flat rent + utilities and some of the operating expenses

NNN Lease – Tenant pays base rent + utilities + operating + taxes, insurance and repairs

If your lease is expiring make sure to explore the options in the market we have available. Let Gerspacher Real Estate Group assist you in finding your next office space and help you understand your lease structure.

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