What type of lease arrangement is most common in commercial property management?

In commercial property management, the most common lease arrangement is the triple net lease. In this type of lease, the tenant is responsible for not only the rent but also for most, if not all, of the operating expenses associated with the property. This typically includes property taxes, insurance, and maintenance costs. This arrangement can be beneficial for property owners because it shifts many of the operating costs to the tenant, allowing the owner to have a more predictable income without the direct burden of these expenses.

Triple net leases are particularly popular in commercial settings because they provide a simplified and clear financial structure for landlords, making it easier to manage ongoing expenses and ensuring that the property remains well-maintained. They also encourage tenants to take greater care of the property since they are responsible for its upkeep and expenses. This type of lease is regularly used for retail spaces, industrial properties, and office buildings, which aligns well with the common practices within the commercial real estate sector.