Commercial Leasing 101: What Tenants and Landlords Need to Know

Lease structures are the foundation of commercial real estate income.

Lease Types:

• Gross Lease: Tenant pays rent; landlord covers expenses.
• Net Lease (NNN): Tenant pays base rent plus operating expenses.
• Modified Gross: Hybrid approach splitting expenses.

Tenant Improvements (TIs): Negotiated allowances can attract quality tenants.

Takeaway: Understanding leases ensures stability and profitability for both tenants and landlords.