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What Are The 3 Types of Commercial Leases? November 6, 2018

Park Avenue, Rochester
What Are The 3 Types of Commercial Leases?, Rochester, New York

Finding the right commercial building for your business is an exciting accomplishment. To seal the deal on your new space, it’s important to find the right type of lease. Business owners should be familiar with the three main types of leases for commercial real estate. This way, you will be prepared for your leasing situation and ensure your company’s success. 

3 Types of Commercial Leases You Should Know

Gross Lease or Full Service Lease

commercial real estateA full-service or gross lease means that the tenant pays their rent and the landlord takes care of the associated expenses. This often includes utilities, maintenance, and janitorial services. If negotiated well, this agreement can be a great option for companies looking for commercial real estate. 

Net Lease

In this type of lease, the tenant will pay rent and additional fees. These costs generally cover a combination of maintenance, operations, property taxes, and property insurance, depending on the type of net lease. In a single net lease, the tenant will pay a portion of the property taxes while the landlord takes care of the other expenses. When a company signs a double net lease, they will pay property taxes and insurance. In a triple net lease, a company pays property taxes, property insurance, and maintenance fees. 

Modified Gross Lease

A commercial real estate company and the tenant determine the terms of a modified gross lease. In this type of agreement, the tenant pays the base rent and they will pay one or several of the associated costs. This lease is often considered a combination of a gross lease and a net lease. Modified gross leases are often favorable to tenants because once they agree to pay property taxes, insurance, or maintenance fees, they can not pay more if these rates go up. 


Securing the right commercial real estate can be tricky, but First Realty Company in Rochester, NY, is here to make the process run smoothly. With over 59 years of experience, this team has worked with their clients to find successful lease and sell non-residential properties. With their specialized knowledge and techniques, they can help you find a property for success. For more information about their services, visit their website or call (585) 271-1720.