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Net Lease
Base lease plus the lessor payors one or more of the following three costs:
  • Net 1: Property taxes
  • Net 2: Insurance
  • Net 3: Maintenance, (CAM) repairs (and sometimes renewals)
  • Net 4: Bondable for force majeur

 Tenants are resistance to triple net leases, especially in older properties, makes the modified net lease more popular. It allows a compromise situation that shares the costs of building operation and maintenance.

Duties of participants (landlord and tenant)

Duties of tenant
  • to pay rent when due
  • to avoid waste of the property

See also:
  • m
Compare with:
Gross Lease

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