Net Lease

A net lease is a type of commercial lease agreement in which the tenant is responsible for paying a base rent as well as additional expenses such as property taxes, insurance, and maintenance costs associated with the property. In a net lease, the landlord typically passes on these expenses to the tenant, making the tenant responsible for the ongoing operating costs of the property in addition to the base rent. This type of lease is commonly used for commercial properties such as retail stores, office buildings, and industrial facilities. Net leases can be structured in various ways, including single net leases, double net leases, and triple net leases, depending on the extent of the expenses passed on to the tenant.