Transcript
There are two main lease types, gross lease, and triple net lease. Gross lease is where the triple nets, which are your taxes, insurance, and common area maintenance are included in your base rent. So, you just pay one lump sum. And whether the triple nets go up or down, your rent never changes. Triple net lease, which is more common, I guess, in the retail and especially retail and office leases, the triple nets are outside of your base rent, so they're on top of it. That way, if your triple nets go up or down, your taxes go up, your insurance goes up or down, um, you will pay the the exact pass-through. So, it's not a a lump sum. It's reconciled at the end of the year by the landlord, and either you get money back or you pay more, depending on what happened in that previous year. Every year, they're estimated, so you pay an estimated amount, and at the end of the year, the landlord or property manager will reconcile, and you will either get money back or, obviously, unfortunately, pay more money, if they went up. Hopefully, this helps.