COMMERCIAL REAL ESTATE LEASE DEFINITIONS
Fully Serviced LeaseA lease in which the rental payment includes other services, such as all building utilities, building maintenance, and lawn and/or such things as snow removal services.
Gross LeaseA lease in which the property owner/landlord pays for all common expenses, including building utilities, building repairs, insurance and (sometimes) property taxes. The cost of a gross lease is higher than for other types of leases because all of these
items are included in the amount of the lease.
Net LeaseA lease in which the tenant pays a lease amount based on the square footage costs, common costs, and all other ownership expenses, including utilities, repairs, insurance and property taxes.
Double Net Lease
lease in which taxes and insurance expenses are included in
the lease payment. The property owner/landlord pays
Triple Net LeaseA lease which includes all taxes, insurance, and maintenance costs are in the monthly payment from the tenant to the property owner/landlord.
Frequently Asked Questions
- How is commercial real estate different than residential real estate?
- Do I need a broker to help me find space?
- How do I hire a broker?
- Fundamentally, it is not. Real estate leasing is real estate leasing, and real estate sales is real estate sales. The law does not provide for a special commercial real estate license, nor separate legal qualification for commercial brokers. There are many specialized aspects of commercial real estate as there are many specialized aspects of residential real estate. This specialization defines the difference.
Do I need a broker to help me find space?
- You need a broker for their expertise surrounding the leasing process. A good broker is much more than just a space finder; you should view them as you would your attorney or accountant. You want their advice as to what space is best suited for your business and what are the best terms that the space can be leased. A good broker will help you in all aspects of the commercial space transaction. That start with understanding your business and ends with a signed lease.
How do I hire a broker?
- The best way to get a broker to work for you is to hire them
as your "exclusive tenant representative." Most brokers have
representation letters for you to sign and once they know that
you are committed to them, they will work hard for you.
Elesa Doll, BrokerLegacy Real Estate
925 Commercial St. SE Suite 220
Salem, OR 97302