What are the expenses and who is paying for them?

Commercial Leasing can get confusing because often times it is difficult to understand what the expenses are and who pays what (every landlord advertises differently). Some may charge you one set price which includes all the expenses (Full Service/Gross); another may charge you only for base rent and you are to pay for everything else (NNN); others may charge you for a mix in between (Modified Gross); (Either way, you are to pay sales tax—they typically state that in the contract; however, sometimes they will not and assume you understand that you are to pay sales tax). Attached is a list of expenses that you may incur when you sign a lease. It is in your best interest to understand which expenses you are to pay for and which your landlord will pay for.

Commercial Lease and Expenses

• Base Rent
• Real Estate Taxes
• Property Insurance
• Maintenance
• Utilities (electric/water)
• Building Supplied Services (parking, after hours AC, utilities, etc)
• Janitorial
• Additional Services (plant service, pest control, janitorial services, coffee, furniture/art rental, hvac maintenance, general liability insurance, etc.)
• Association Dues (if applicable)
• Sales Tax