|Types of Commercial Real Estate Leases|
|Type of Lease||Rent Basis||Often Used In|
|Percentage Lease||Base Rent + Percent of Monthly Sales||Retail Businesses; Malls|
|Net Lease||In additional to rent, tenant pays some or all of taxes, insurance, or maintenance.||Any commercial lease; usually favors landlord’s interests.|
|Double Net Lease||Tenant pays rent + taxes and insurance.||Any commercial lease; usually favors landlord’s interests.|
|Triple Net Lease||Tenant pays rent + taxes, insurance, and maintenance.||Any commercial lease; usually favors landlord’s interests.|
|Fully Serviced Lease (Gross Lease)||Landlord directly pays all or most usual costs. These costs are often passed on to tenant in rent as a “Load Factor.”||Office, Some industrial and retail leases.|
Load Factor is a method of calculating total monthly rent costs to a tenant that combines usable square feet and a percentage of square feet of common areas which can include restrooms, lobby, elevators, stairwells, and hallways.
Usable square feet + percentage of common area square feet = rentable square feet.