When comparing commercial properties, the quoted rental rate does not always tell the complete story. The lease structure determines how expenses such as real estate taxes, property insurance, utilities, maintenance, and common area costs are divided between the landlord and tenant.

A gross lease typically includes most operating expenses in one rental payment. A modified gross lease divides certain expenses between the landlord and tenant. With a net lease, the tenant pays base rent plus some or all of the property’s operating expenses.

Because every lease is different, tenants should carefully review what is included before comparing properties or signing an agreement. Understanding the total occupancy cost—not just the base rent—can help prevent unexpected expenses and support better business decisions.

Godino & Company, Inc. helps businesses evaluate commercial lease opportunities, understand proposed terms, and negotiate with confidence.

Contact us to discuss your commercial real estate needs.