What is an Absolute Net Lease?
In commercial property investing, there are numerous types of leases with different expense structures. Though not typical, the simplest is a gross lease, in which the tenant pays a base rent, and the owner is responsible for managing all other expenses, including taxes, insurance, maintenance, and repairs. Net leases are more popular than gross, with subtypes single net, double net, triple net, and absolute. Generally speaking, a net lease assigns the following expenses to the tenant: