Rentana Knowledge Base

In the world of commercial real estate, understanding the different types of lease structures is crucial for both landlords and tenants.

A full service lease is a comprehensive rental agreement. The tenant pays a single, all-inclusive rent that covers both the base rent and the operating expenses of the property. This type of lease is often synonymous with a full service gross lease, which contrasts with other models like the net lease, triple net lease, and the modified gross lease. Each has distinct financial implications for the parties involved.

The full service lease model is particularly popular because of its simplicity.

Tenants appreciate having a consistent monthly expense without worrying about variable operating costs, such as utilities and maintenance.

This type of lease can be advantageous when there is an unpredictable market, as it offers stability and predictability in budgeting.

By offering a one-bill solution, full service leases benefit landlords who can streamline management and maintain control over property upkeep.

This lease structure might also appeal to businesses looking for ease of occupancy and minimal administrative burden.

In contrast, other lease structures like the triple net lease and the modified gross lease require tenants to handle additional costs beyond the base rent, which can affect overall expense management.