Looking to lease a property? If so, it is vital to understand the difference between a standard (gross) lease and net lease. These two types of leases distinguish between the responsibilities assumed by landlords and tenants.
When leasing a property, expenses typically have to do with property taxes, building insurance, and maintenance. If a landlord chooses a standard lease, that means he/she bears responsibility for all of the aforementioned expenses. A net lease means one or more of the expenses falls on the tenant’s shoulders.
At 350 Goose Lane Office Park, our ongoing commercial development in Guilford, we offer tenants a triple net lease. A triple net lease means that the tenant is responsible for all expenses (property taxes, building insurance, and maintenance). These are also typically signed for a long period of time and have rate increases built in.
Triple net leases offer significant benefits for both landlords and tenants. For landlords, triple net leases can be ideal. A long-term lease agreement without the threat of random expenses allows for a constant and sustainable stream of income. Likewise, tenants can also benefit. It is likely that rent under a net lease agreement will be lower than that of a standard lease as landlords could subtract the estimated expenses from the rent.
In essence, triple net leases are mutually beneficial leasing options for all parties involved. Considering the quality and efficiency with which we continue to build the office park on Goose Lane, tenants can expect extremely low expenses.
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