Differences between a "Gross Lease" and a "Net Lease"

By
Commercial Real Estate Agent with NAI Landmark Bozeman Commercial Real Estate

What are the differences between a "Gross Lease" and a "Net Lease"?

A gross lease obligates the Landlord to pay taxes and operating expenses on a property. In theory, the level of rent paid by a tenant is high enough to cover the landlord's expense outlays.

Net leases require the tenant to pay a base rent plus a portion of the operating expenses. Full net leases also called "net-net-net" or "triple net" leases typically require tenants to cover all expenses, including taxes, insurance, utilities, repairs, and maintenance. Some net leases may require the tenant to pay some expenses and the landlord to pay other expenses. The term "net lease" applies to any and all leases under which a tenant pays portions of the operating expenses.

Call Vern Bitz (406) 556-5037 for more information or send an email to vern.bitz@nailandmark.com

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