kind of depends on your local market, but, in my market triple net involves:
Tenant pays their pro-rata share of taxes, Common Area Maintenance, their own utilities, maintenance on their space, and the landlord pays structural repairs and building insurance.
Some owners make the tenants pay a management fee, but not always.
In essence in a Gross lease the landlord pays all operating expenses.
A single net usually has the tenant paying utilities.
Double net is utilities plus taxes
Triple net is utilities plus taxes plus maintenance.
Taxes are often modified to be property taxes above the current amount at the time of the inception of the lease. This is known as a tax increase pass through.
Shopping centers and some office buildings also have common element pass throughs so that in addition to paying the maintence on their store the tenant also pays their pro-rata share of the cost of maintaining the common elements (plowing the parking lot for example.)
In addition some multi-year leases on commercial spaces have what are called "escalator clauses" which increase the rent in the out years either by a fixed amount or by some formula, usually the consumer price index.
kind of depends on your local market, but, in my market triple net involves:
Tenant pays their pro-rata share of taxes, Common Area Maintenance, their own utilities, maintenance on their space, and the landlord pays structural repairs and building insurance.
Some owners make the tenants pay a management fee, but not always.
In essence in a Gross lease the landlord pays all operating expenses.
A single net usually has the tenant paying utilities.
Double net is utilities plus taxes
Triple net is utilities plus taxes plus maintenance.
Taxes are often modified to be property taxes above the current amount at the time of the inception of the lease. This is known as a tax increase pass through.
Shopping centers and some office buildings also have common element pass throughs so that in addition to paying the maintence on their store the tenant also pays their pro-rata share of the cost of maintaining the common elements (plowing the parking lot for example.)
In addition some multi-year leases on commercial spaces have what are called "escalator clauses" which increase the rent in the out years either by a fixed amount or by some formula, usually the consumer price index.
Thanks guys. That's all I needed. Back to work I go!!!