Lease Types Defined

The list below provides general information about lease types but is not a comprehensive list. Other parameters and guidelines with relation to tenant costs versus landlord costs are subject to points outlined in the individual lease.

Triple Net (NNN): A lease requiring the tenant to pay the expenses of the property leases, such as taxes, insurance, maintenance, utilities, cleaning, in addition to a fixed rental rate. The terms "net net", "net net net", "triple net", and other such repetitions are used.

Full Service (FLSV): A lease in which the stated rent includes the operating expenses and taxes for the building. Same as a Gross lease. Opposite of Net Lease.

Full Service Except Janitorial (FLSVEJ or FSEJ): A lease in which the stated rent includes the operating expenses and taxes for the building but excludes janitorial. Same as a Gross lease. Opposite of Net Lease.

Gross: A lease in which the stated rent includes the operating expenses and taxes for the building. Same as a Full Service lease. Opposite of Net Lease. This is the least common lease type.

Modified Gross (Mod Gross): A modified gross lease sits somewhere between a Triple Net lease and a Gross lease. Some expenses may be included in the lease. Utilities are most likely paid by the tenant, however, utilities can be combined depending how a building and its utility meters are demise