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The Cogs of Industrial Leasing

Welcome to Our "Commercial Lease" Center of Excellence

This page contains the following:

  1. What is a Commercial Lease?
  2. Why so Many Lease Types?
  3. Specialized Terminology

What is Commercial Lease?

A commercial lease encompasses your agreement with your landlord, details your rights to occupy and utilize the property you are leasing, and specifies what you will pay to your landlord and to others related to the property you are leasing - basically, your rights and obligations with regard to the subject property. 

Why so Many Lease Types?

A lease type, or category - like NNN, or Triple Net - is a generalization of the terms of that type of lease for purposes of quicker communication. The term used doesn't define the lease completely, but does say a lot to a Commercial Broker, and should say a lot to a commercial tenant. The terms are used a lot in the business, so it is worth reviewing the types and reading brief articles about each. A good starting point for your reading is probably our article entitled Entering Into a Commercial Lease Agreement - A Guide From a Broker. This article, as well as much of what is discussed in this article, is summarized and linked below.

Specialized Terminology

Many terms are defined in the articles referenced in this section including Common Area Maintenance, Expense Caps, Lease Types like Modified Gross, Net Lease, Full Service Lease, Triple Net (NNN) Lease, and Industrial Gross Lease -  to mention a few.

  • library_books Common Area Maintenance (CAM) - Commercial Lease Terminology - Part 2
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    Posted by Eric Hughes,
    Article Synopsis

    The Cogs of Industrial Leasing ThumbnailIn Commercial Real Estate leases, Common Area Maintenance, or CAM, refers to activities related to areas and items shared between tenants in a multi-tenant building or complex…

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  • library_books Expense Caps - Commercial Lease Terminology - Part 1
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    Posted by Eric Hughes,
    Article Synopsis

    The Cogs of Industrial Leasing ThumbnailIn Commercial Real Estate Leases, an Expense Cap typically refers to expenses that are passed along from the landlord to the tenant for Common Area Maintenance of a building…

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  • library_books Modified Gross - Types of Commercial Leases - Part 5
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    Posted by Eric Hughes,
    Article Synopsis

    The Cogs of Industrial Leasing ThumbnailIn Commercial Real Estate, a Modified Industrial Lease involves modifications to the Industrial Gross Lease. The modifications can vary, but the tenant often pays for certain items contributing to a Multi-Tenant building’s Common Area Maintenance…

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  • library_books Net Lease - Types of Commercial Leases - Part 4
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    Posted by Steve Watts, Eric Hughes,
    Article Synopsis

    The Cogs of Industrial Leasing ThumbnailIn commercial real estate, there is often confusion regarding the differences between a Gross and a Net Lease, along with their variations. Before diving in, it’s important to understand that tenants will ultimately pay for just about everything. Net leases break down the details into Base Rent plus Operating Expenses…

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  • library_books Full-Service Lease: Understanding Types of Commercial Leases - Part 3
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    Posted by Eric Hughes,
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    The Cogs of Industrial Leasing | Warehouse FinderA Full-Service Lease, typically applicable to multi-tenant office buildings, offers one monthly rate that encompasses all costs associated with the property, such as electricity, janitorial services, management, property taxes, and property insurance. This lease type allows the landlord to pass along any increases in expenses to the tenants each year.

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  • library_books Understanding Triple Net (NNN) Leases in Commercial Real Estate
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    Posted by Eric Hughes,
    Article Synopsis

    The Cogs of Industrial Leasing ThumbnailA Triple Net (NNN) lease is a popular type of commercial real estate lease agreement where the tenant is responsible for paying the base rental amount each month to the landlord. In addition to the base rent, the tenant also reimburses the landlord monthly for their pro-rata share of certain estimated…

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  • library_books Understanding Industrial Gross Leases: Responsibilities and Expenses
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    Posted by Eric Hughes,
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    The Cogs of Industrial Leasing ThumbnailThe industrial gross lease is common in multi-tenant industrial properties. In an industrial gross lease, the tenant is responsible for some, but not all, of the operating expenses of the property…

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  • library_books Understanding Commercial Lease Types and Responsibilities
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    Posted by Eric Hughes,
    Article Synopsis

    Image representing a commercial lease agreement | Warehouse FinderOver three decades of commercial real estate leasing experience in warehouse and office markets, we’ve encountered numerous lease arrangements and responsibilities. This article aims to provide a comprehensive overview of the most common lease types…

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  • library_books Mastering Commercial Lease Renewal: Expert Tips for Office and Industrial Tenants
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    Posted by Eric Hughes,
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    The Cogs of Industrial Leasing ThumbnailNavigating the process of commercial lease renewal can be complex and challenging. Still, tenants can secure favorable terms for their office or industrial space with the right approach and knowledge…

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  • library_books Entering Into a Commercial Lease Agreement - A Guide From a Broker
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    Posted by Eric Hughes,
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    Two Guys Talking Real Estate in a WarehouseOverview 

    Committing to a lease for 3, 5, 7, or 10 years is a monumental consideration for a business. Remember what you are committing to - rent and expenses for the overall lease period. Whether moving into the first property for your business or moving from one location to another

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  • library_books Exploring Key Aspects of Commercial Warehouse Leasing, Buying, and Building
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    Posted by Eric Hughes,
    Article Synopsis

    watercolor view of the inside of a warehouse | Warehouse FinderIn this article, we will delve into important aspects of commercial warehouse leasing, buying, and building. We aim to provide valuable insights and resources to help you make informed decisions when it comes to your commercial property needs. We have also included essential links and improved title texts to guide you further on this journey.

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    • Houston, TX

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