When leasing a commercial space in Florida, one of the most important—and least understood—aspects is the type of lease agreement you sign. Among the most common options are the Triple Net Lease (NNN) and the Gross Lease, two formats that distribute costs between landlord and tenant in very different ways. Choosing the right lease is not just a legal decision, but also a financial and strategic one that can impact the future of your business.
What Is a Gross Lease?
In a Gross Lease, the landlord covers most of the operating expenses related to the property. This typically includes property taxes, insurance, and maintenance costs. The tenant pays a fixed monthly rent and, in many cases, doesn’t need to worry about additional expenses.
This type of lease provides financial predictability, which is ideal for businesses that are just starting out or that operate on tight margins. However, it’s important to note that the rental rate may be higher, as the landlord usually builds in an estimate of those operating costs into the monthly rent.
What Is a Triple Net Lease?
The Triple Net Lease (NNN), on the other hand, shifts nearly all property-related costs to the tenant, in addition to the base rent. This means the tenant is responsible for property taxes, insurance, maintenance, and other operating expenses.
This type of lease is more common in shopping centers, investment properties, or large commercial spaces. It often comes with a lower base rent, but that initial savings can quickly disappear if the additional costs aren’t carefully managed. It can work well for established businesses that prefer to have more control over the space they occupy.
Which Lease Is Better for Your Business?
The answer depends on your goals, your financial model, and the type of space you’re considering. If you need stability and predictable expenses, a Gross Lease may give you peace of mind. But if you’re willing to take on more responsibility in exchange for a lower base rent, a Triple Net Lease can offer more flexibility and control.
There are also hybrid leases, such as the Modified Gross Lease, which split costs between the parties more evenly and can be a great alternative when both sides are looking for a custom solution.
What matters most is that you do not make this decision without fully understanding the implications of each lease type. A common mistake is focusing only on the monthly rent figure without considering the long-term impact of additional expenses and legal obligations.
Don’t sign blindly. Get legal advice before committing to a lease.
At Jurado & Associates, we help you compare lease types, identify hidden clauses, and negotiate fair terms that protect your interests from day one.
Message us today on WhatsApp at +1 305 921 0976 or email us at [email protected]. We’re here to help you make safe, strategic, and informed decisions.
