Gross, net, and triple-net (NNN) leases shift different costs — taxes, insurance, maintenance — onto the tenant or landlord. Here's how to actually compare them.
Identify what's actually included in the base rent
Ask directly, in writing, rather than assuming — "net rent" and "gross rent" are used inconsistently enough in casual conversation that you need the lease type spelled out.
Get a full breakdown of additional rent
For net and triple-net leases, ask for last year's actual recoverable costs (taxes, insurance, common area maintenance), not just an estimate — estimates can run low.
Compare total occupancy cost, not the headline rate
Add base rent plus additional rent for an apples-to-apples comparison between two spaces quoted under different lease structures.
Negotiate caps or audit rights where you can
A cap on annual increases to recoverable costs, or the right to audit the landlord's expense calculations, protects you from costs creeping up faster than expected over the lease term.
The tenant pays one flat rent; the landlord covers property taxes, insurance, and most maintenance. Simplest to budget for, common for smaller office spaces.
The tenant pays a lower base rent plus their share of property taxes, on top of the base rent. Sits between gross and triple-net.
The tenant pays base rent plus their share of taxes, insurance, AND maintenance — common for retail and industrial. The landlord's income is more predictable; the tenant carries more cost variability.
Typically includes utilities and cleaning on top of what a gross lease covers — common for larger, professionally-managed office buildings.
Book a free consultation with Narges to talk through a specific lease, or ask HAI to help break down the numbers.
