There are many different types of commercial leases. A “triple net” lease means that the Landlord’s taxes, common area maintenance and insurance are passed through to the tenant as additional rent. In a “gross” lease the Landlord’s taxes, common area maintenance and insurance are factored into the Base rent. In a “modified gross” lease, many Landlord costs may be factored into the base rent but some items such as real estate tax increases over a base year may be passed through to the tenant. When preparing a Letter of Intent most commercial brokers will understand which type of lease is used in the Building and the Tenant should have at least a general sense for what the monthly charges will be.
*Thank you for taking the time to read this article. This article is part of our “Commercial Leasing for Non-Lawyers,” a Blog Series on Commercial Leasing. Other aspects of commercial leasing transactions in New York are discussed in other Parts of this series.
For questions about residential real estate law, or general information about our firm, please contact us at (914) 338-8050 or send an e-mail to keith@betenskylaw.com. We look forward to hearing from you.
Betensky Law PLLC
118 N. Bedford Road, Suite 302
Mount Kisco, New York 10549
(914) 338-8050
keith@betenskylaw.com
www.betenskylaw.com
This is ATTORNEY ADVERTISING. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of an attorney/client relationship. Prior results do not guarantee a similar outcome.