What is a “Fully Net” or “Absolute Net” lease?

Answer:

A Fully Net lease is a commercial real estate leasing agreement in which the tenant agrees to pay the rent, the property taxes, and all other aspects of property maintenance, including major repairs or replacement. 

It’s a type of passthrough lease in which all the property taxes, and other costs (except mortgage payments) become the tenant’s responsibility. In a fully net lease, the tenant is responsible for all costs associated with the property other than debt service, if any.

Author

Gary Stevens

A retail real estate professional since 1986, having held leadership positions as both landlord and tenant for such companies as Samuels & Associates, Staples, Inc., Lifetime Fitness, Sears Holdings, Ahold Real Estate and RPT [NYSE].

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