Every Commercial Lease Type,
Compared Side by Side
Full Service, Modified Gross, Single Net, Double Net, Triple Net, and Ground Lease — who pays what, pros and cons for tenants, and which structure fits your business. Plus a quiz to find your match.
Full Service / Gross Lease
One rent payment covers everything
In a full-service or gross lease, the tenant pays one all-inclusive rent amount. The landlord pays all property operating expenses from that rent: taxes, insurance, maintenance, utilities, and management. For tenants, this is the simplest structure — but you're paying a premium for that simplicity, and the landlord is building an expense buffer into your rent.
Modified Gross Lease
Base rent plus some pass-throughs
A modified gross lease is a hybrid structure where the tenant pays a base rent plus a negotiated share of operating expenses. The specific split varies deal-by-deal — some include utility pass-throughs, others include expense increases above a base year. This is the most negotiated and variable lease structure; "modified gross" can mean almost anything.
Single Net Lease (N)
Tenant pays rent plus property taxes
In a single net (N) lease, the tenant pays base rent plus their pro-rata share of property taxes. The landlord retains responsibility for insurance, structural maintenance, and most other operating expenses. Single net leases are less common than NNN or gross structures.
Double Net Lease (NN)
Tenant pays rent, taxes, and insurance
A double net (NN) lease requires the tenant to pay base rent plus property taxes and building insurance. The landlord typically remains responsible for structural repairs, the roof, and the building's exterior envelope. NN leases are common in retail strip centers and light industrial parks.
Triple Net Lease (NNN)
Tenant pays almost everything
The triple net (NNN) lease is the dominant structure in retail, industrial, and flex commercial real estate. The tenant pays base rent plus the three "nets": property taxes, property insurance, and maintenance (CAM). The landlord typically retains responsibility only for structural repairs, roof, and the building exterior. NNN gives tenants maximum transparency but requires active expense management.
Ground Lease
Lease the land; you own the building
A ground lease is a long-term lease of the land only, typically 50–99 years. The tenant constructs and owns the building improvements during the lease term. At expiration, ownership of improvements reverts to the land owner. Ground leases are complex financial instruments requiring specialized legal and financing expertise.
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