January 14, 2025

Commercial Realestate Leases

5 Lease Types

1. Fixed lease

  • Pay monthly rent, some utilities, and nothing else.
  • Landlord pays taxes, insurance, maintenance, and sometimes utilities.

2. Net lease

  • Monthly rent + percentage of other expenses (tax, insurance and maintenance).
  • The portion of other expenses is based off the size of the space rented.
  • cost increases over time.
  • 3 main forms
  • Single net lease - N lease, tenant responsible for one extra expense.
  • Double net lease - NN lease, tenant responsible for two extra expenses.
  • Triple net lease - NNN lease, Tenant is responsible for three major expenses.

3. Percentage leases

  • Tenant pays base rent + percentage of gross income (when exceeding a threshold).
  • Some percentage leases will not have a base rent and simply be composed of a % of income.
  • This can be a great option for those who have peaks in business and then slow periods.

4. Modified gross lease

  • Customisable leases that fit both the landlord and tenant.
  • When signing onto a modified gross lease take extra caution.

5. Absolute NNN lease

  • The tenant is responsible for all costs.
  • Tenants pay fixed rent, the share of property taxes, maintenance, and insurance.

Coworking

With coworking, you get an office that is fully fitted out, ready to move into, and staffed with people to take care of everything for you. It is the quickest, most affordable and easiest way to get yourself into an office. Enquire today.

Read our other posts

The ‘switch cost effect’ might be draining 40% of your day

The ‘switch cost effect’ might be draining 40% of your day

Are coworking spaces stealing your focus? The ‘switch cost effect’ might be draining 40% of your day. Here is how we fix it.

Coworking: One size does not fit all

Coworking: One size does not fit all

Too many coworking spaces try to be everything to everyone - and end up being nothing to anyone.

Work from Anywhere: Our Partnership with SpaceCubed

Work from Anywhere: Our Partnership with SpaceCubed

Work from anywhere. Your collective_100 membership includes access to premium workspaces in Perth, Adelaide, and Sydney.