Glossary Topic: Lease Structures

Costs for shared areas such as parking lots, landscaping, and lighting, typically passed through to tenants.

Building components a landlord often stays responsible for under NN and some NNN leases.

Lets a tenant pay reduced rent or terminate if named anchor tenants or required occupancy levels are lost.

A rent increase tied to changes in the Consumer Price Index instead of a fixed percentage.

The tenant pays property taxes and insurance; the landlord usually keeps roof, structure, and some maintenance.

Lease language setting scheduled rent increases — fixed bumps, percentage increases, or CPI adjustments.

The landlord pays property expenses and the tenant pays a single all-in rent.

A long-term lease of land only. The tenant builds and owns the improvements, which typically revert to the landowner at lease end.

A tenant that stays in possession after the lease expires, often at an elevated holdover rent.

Allows early lease termination if specified conditions, such as sales thresholds, aren’t met.