6 Lease Types

Commercial Lease Types Explained

From NNN to Full Service Gross to Ground Leases. Understand each commercial lease structure, who pays what, and the key fields and red flags to watch before you sign or acquire.

Triple Net Lease (NNN)

NNN

Triple net (NNN) leases: tenant pays base rent, property taxes, insurance, and maintenance. Learn NNN expenses, red flags, and the 126 fields to abstract.

RetailFast Food / QSRPharmacy

Typical term: 10–25 years

Modified Gross Lease

MG

Modified gross leases split operating expenses between tenant and landlord. Learn expense allocation, base year provisions, and red flags to watch.

OfficeFlex SpaceMedical Office

Typical term: 3–7 years

Ground Lease

GL

Ground leases: tenant leases land, builds improvements, and loses them at expiration. Learn 50-99 year terms, leasehold financing, and red flags.

Retail PadsHotelsOffice Buildings

Typical term: 50–99 years

Percentage Lease

PCT

Percentage leases combine base rent and a cut of gross sales. Learn breakpoints, natural vs artificial, gross sales definitions, and red flags.

Regional MallsOutlet CentersStrip Centers

Typical term: 5–15 years

Gross Lease

GRS

Gross leases: tenant pays one fixed rent, landlord covers all expenses. Learn differences from full service gross, NNN, and key lease terms.

Older Office BuildingsSmall Commercial SpacesIndustrial (older stock)

Typical term: 1–5 years

Build-to-Suit Lease

BTS

Build-to-suit leases: developer builds to tenant spec, tenant commits for 15-25 years. Learn BTS structure, NNN operation, and critical abstractions.

Corporate HeadquartersDistribution / Fulfillment CentersManufacturing

Typical term: 15–25 years

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Frequently Asked Questions

What types of commercial leases does Lextract support?
Lextract supports the common commercial lease types: Triple Net (NNN), Modified Gross, Full Service Gross, Gross, Percentage, and Ground. It also handles single-tenant and multi-tenant structures. The 126-field schema captures the financial and operational provisions for each structure.
What is the difference between a gross lease and a net lease?
In a gross lease, the tenant pays one all-inclusive rent and the landlord covers most operating expenses such as taxes, insurance, and maintenance. In a net lease, the tenant pays a lower base rent but also reimburses the landlord for some or all operating expenses. The main difference is which party carries the risk of rising operating costs. That is why the CAM and expense pass-through fields in Lextract matter most for net leases.
Can Lextract abstract a modified gross lease?
Yes. Modified gross leases split expense responsibility between landlord and tenant in negotiated ways, and Lextract supports them. Lextract extracts the base rent, the expense categories each party is responsible for, any operating expense stops or base years, and CAM cap provisions. Confidence scoring flags any provision where the expense allocation language is unclear.
What makes NNN lease abstraction different from gross lease abstraction?
NNN lease abstraction means extracting three separate expense obligations: property taxes, building insurance, and CAM. It also means capturing any caps, exclusions, or audit rights that limit tenant exposure. Gross lease abstraction focuses more on the all-in rent and any carve-outs the tenant is responsible for. The CAM and expense fields in Lextract matter most for NNN leases, where these costs can add a large amount to the base rent.
Does lease type affect extraction?
Lease type mainly affects which fields get populated. NNN and modified gross leases populate more CAM and expense fields than full service gross leases. Ground leases and percentage leases use less standard language, so they may produce more medium-confidence fields. Lextract gives every field a confidence score so you can spot the fields that need human review, whatever the lease type.

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Upload your commercial lease PDF, whether NNN, Modified Gross, Ground Lease, or any other structure, and get 126 structured fields extracted with red flag detection. Just $15 per lease.

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