When a commercial property is sold, the interest is sold for a single price. When it comes to commercial leases, there are different approaches involved for payment. The most common leases are a net lease and a gross lease, each with their own set of differences and advantages.
What is a Gross Lease?
This type of lease is the most tenant-friendly, as the rent is all-inclusive. Many of the expenses that come with living in the property, such as utilities and handyman services, are covered in the lease. Though the landlord can negotiate various aspects of these leases, the purpose is to primarily benefit the tenant without placing too much strain on the property owner.
What is a Net Lease?
A net lease tends to be more landlord-friendly, as it requires the tenant to pay not only rent, but also any taxes, insurance, and maintenance associated with the property. Though the payments can fluctuate based on the level of maintenance or utilities used, the tenant may find that they are paying less overall than they would with a gross lease due to these fluctuations.
If you are interested in leasing a commercial property but are unsure as to which type of lease is best for you, contact our real estate attorney in St. Johns County. Our experienced team at Baron Bartlett, P.A. will help you navigate all confusing aspects of your latest transaction.