What are the differences between the various rent structures in the market?
Rent structures can vary greatly depending on the building type and Landlord preference. To the untrained professional, they may also be confusing or misleading. It is possible to see a rent quote at $10.00 per square foot that ends up costing more than a rent quoted at $20.00 per square foot. In the most simple of terms, the variety of rental structures all describe what costs are included in the rent. On one end of the spectrum is a triple net lease, often seen quoted as $X.XX per s.f. NNN. This is most common in warehouse, retail, and single-story office facilities. Triple net means that the rent is net of (or a tenant pays in addition to the base quoted rent) the three primary components of operating costs: taxes, insurance, and common area maintenance. The tenant also contracts separately for the services it uses, including janitorial, electric and/or gas, water, etc. At the opposite end of rental structures are full-service rents. These rents are often seen quoted as $X.XX per s.
