What are the “Nets” in a commercial property lease?
Property Tax
Property Insurance
Common Area Maintenance (CAM)
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See AllGround lease (leased fee)- Most secure. Tenant typically pays for the cost of the building. Land Owner receives the building when the tenant leaves. Fee Simple- Depreciation of the building.
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Fee Simple (building and land) Ground lease (leased fee) land only Leasehold (building only)
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Bondable- Tenant pays base rent, utilities, property tax, property insurance, and common area maintenance (CAM) even if a natural disaster destroys the building.
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