Yet leases tend to be longer (5-10+ years) and are often structured as “triple net” – meaning that the tenant is responsible for their pro rata share of the taxes, insurance and common area maintenance (CAM) charges.
Commercial real estate is slightly more complicated. Leases are more nuanced, often tailored to the specifics of the tenant and their circumstances. Yet leases tend to be longer (5-10+ years) and are often structured as “triple net” – meaning that the tenant is responsible for their pro rata share of the taxes, insurance and common area maintenance (CAM) charges. This reduces the financial burden on the owner. Those who are able to understand the nuances of commercial real estate often find this market segment to be highly lucrative, and therefore, are often drawn to commercial property mutual funds.