Commercial Real Estate
Under a gross lease arrangement, the tenant of the property pays a set amount of rent to the landlord monthly. The amount is agreed upon and stated in the written lease. The landlord is then responsible for paying the taxes, insurance and any other costs associated with owning the commercial rental property.
A net lease arrangement is slightly different. Under this type of lease, the tenant is responsible for paying the rent and a portion of the maintenance fees, insurance and other operating expenses for the commercial property. While this type of arrangement adds more costs to the renter, it relieves the property owner from some of the costs of owning and maintaining the property.
Triple-net leases are most commonly used for industrial buildings or freestanding facilities. Under this lease agreement, the tenant is responsible for paying for all of the fees associated with operating the build. This is on top of the monthly rent the tenant pays the landlord for occupying the space.
Information courtesy of eHow