There are two main types of commercial business leases. These can be categorised as Gross Lease or Net Lease and split into the categories below.
Percentage lease
This lease is based on a base rent plus a percentage of monthly sales.
Net lease (or single net lease)
In addition to the base rent, the tenant will also pay a proportion of relevant taxes, insurance or maintenance i.e. a single additional element added to the base rent.
Double net lease
In addition to the base rent, tenant will also pay a proportion of taxes and insurance. i.e. two additional elements added to the base rent
Triple net lease
In addition to the base rent, tenant will also pay a proportion of taxes and insurance and maintenance.
i.e. three additional elements added to the base rent.
Fully serviced lease
This lease is based on all costs being included within the rent, although rents are usually significantly higher to accommodate this.