Final answer:
A typical lease for a multi-tenant industrial building is a triple-net lease, where the tenant is responsible for property taxes, insurance, and maintenance costs.
Step-by-step explanation:
A typical lease for a multi-tenant industrial building is called a triple-net lease. In a triple-net lease, the tenant is responsible for paying not only the base rent but also the property taxes, insurance, and maintenance costs associated with the property. This type of lease is commonly used for industrial buildings because it allows the landlord to pass on some of the expenses to the tenants.
Arguably the favorite among commercial landlords, the triple net lease, or “NNN” lease makes the tenant responsible for the majority of costs, including the base rent, property taxes, insurance, utilities and maintenance. This even includes standard property repairs associated with the commercial space in question.
There are different types of leases, but the most common types are absolute net lease, triple net lease, modified gross lease, and full-service lease. Tenants and proprietors need to understand them fully before signing a lease agreement.