When a commercial tenant enters into a lease, it could be a gross lease or a net lease. A gross lease means that the rent will encompass all of the expenses related to renting a building. A net lease means that the tenant pays a lower rate of rent, but it will also have to pay certain additional expenses.
A net lease can be in the form of a single, double or triple net lease. In a single net lease, the tenant pays a portion of the property taxes in addition to utilities and janitorial services. In a double net, the tenant pays a portion of the property taxes and insurance. In a triple net lease, the tenant pays for a portion of property taxes, insurance and common area utilities.