Gross Lease- tenant is accountable only for a fixed fee or rent—no other expenses included, such as insurance, maintenance, real property tax, etc.

Net Lease- tenant pays rent and also a share of the associated operating expenses, including insurance, taxes, and/or utilities. Often times nonprofits are leased a property where rent is paid, but the three main “nets” are covered by the renter, including real estate taxes, building insurance, and maintenance.

Triple Net Lease- Nonprofits can apply for property tax exemption on the part of the property that they use, which would cover one “net.”

Types of Commercial Leases