For more on common lease terms, such as net leases, see Commercial Leases: Negotiate the Best Terms and related articles in the Your Business Space & Commercial Lease section of this site.
Triple net leases. There are variations to triple net leases, but the basic concept is that you, as the property owner, do not have to pay expenses on the property (as would be the case with residential real estate). The lessee handles all property expenses directly, including real estate taxes. The only expense you'll have to pay is your mortgage. Companies like Walgreens, CVS, and Starbucks typically sign these types of leases, as they want to maintain a look and feel in keeping with their brand, so they manage those costs, which means you as an investor get to have one of the lowest maintenance income producers for your money. Strip malls have a variety of net leases and triple nets are not usually done with smaller businesses, but these lease types are optimal and you can't get them with residential properties. For more on common lease terms, such as net leases, see Commercial Leases: Negotiate the Best Terms and related articles in the Your Business Space & Commercial Lease section of this site.