Know the facts, terms when negotiating your lease

'NNN' might be right, but so could a 'gross lease' or 'full service'

I’ve been approached by several business owners over the past several weeks looking for an interpretation of their current lease document and trying to determine what financial exposure they have over and above what the basic lease rate requires.

I thought it would be helpful for everyone involved in looking for commercial space to understand basic lease forms and to be aware of some specific, commonly misunderstood clauses included in most lease documents. This will provide an understanding of what to look for before you sign on the dotted line and potentially save you money and unnecessary financial stress in the future.

Let’s start with reviewing the standard basic lease forms that are typically used in commercial leasing:

A triple-net, or NNN, lease

Gross lease or modified gross lease

Full-service leaseThe NNN lease document

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