The bottom line is that you need to read the lease language. A triple net lease means that the tenants are reimbursing taxes, insurance, and CAM (and possibly any structural repairs in a true NNN lease). A full service gross lease is when your base rent IS your rent, and the expenses are paid by the landlord. A modified gross lease is where the tenant is reimbursing a portion of the expenses. I've done deals in over twenty states, and the tenant reimbursements vary by the area and the property type, as well as other factors. I've been a commercial real estate attorney and broker for 25 years. The only sure way to know what the expense reimbursement scenario is is to read the lease document. Terms like modified gross are thrown around the brokerage community very carelessly. I'm not a big fan of unwelcomed surprises. Read the lease document and get the historical expenses from the landlord.
Oct 7, 2010