What is a full Service Gross Lease? In a full service gross lease the landlord pays all utilities, janitorial, maintenance and building insurance up to a specified expense stop. The landlord maintains the tenant suite, inside and out and pays all operating expenses up to the specified stop amount. (See Expense Stop below)

What is a Modified Gross Lease? A modified gross lease is similar to the full service gross lease. In the modified gross lease the landlord pays for all operating expenses, subject to an expense stop just as in the full service gross. In the modified gross lease, each tenant is individually metered for electricity and pays their own power bill. Also, janitorial service is not provided by the landlord. Each tenant must clean out their own unit or contract with ajanitorial service. In other words, the landlord pays for everything outside the tenants' suite and the tenant pays for everything inside.

What is a Triple Net (NNN) Lease? In a triple net lease the tenant pays his proportionate share of the taxes, insurance and maintenance of the property which is known as CAM (Common Area Maintenance). Each month the landlord totals up all the bills, divides the figure by the tenants pro-rate share, and sends each tenant a bill. The tenant also is responsible for their own utilities, janitorial and maintenance. (See CAM below)

What is an Expense Stop? An expense stop is the maximum amount of money the landlord will pay in operating expenses. The expense stop states a specified ceiling on operating costs (such as taxes, water, power, sewer, janitorial, rubbish removal and insurance). For example, if the expense stop is $5.50 per square foot annually on a 100,000 square foot building (or $550,000) for the first year of the lease term, the landlord will pay all expenses up to $550,000 per year. If, in the subsequent years of the lease term the expenses exceed the expense stop, the tenant then pays the pro-rata difference between the actual expenses and the expense stop. If actual expenses run $560,000 annually and your expense stop is $550,000 the calculation is a follows: $560,000 minus $550,000 equals $10,000 divided by your pro-rata occupancy(say 10%) equals $1,000 per year obligation to the tenant or an additional $83.33 per month.

What is Common Area Maintenance (CAM)? CAM is short for Common Area Maintenance, which are the operating expenses that it takes to run the building. In the CAM, the tenant is billed by the landlord for operating expenses incurred monthly.

In Las Vegas it is estimated that power and janitorial add approximately $.26 per foot per month over the base rent. To compare a Modified Gross lease to a full service gross lease add $.26 to the base rent. To compare a NNN lease to a full service gross, add approximately $.45 -$.70 per foot per month over the base rent to adjust for electricity, janitorial, operating expenses and maintenance contracts.

What is the Difference Between'LRentable" and "Usable" Square feet? 1. Rentable-as defined by the Building Owners and Managers Association (BOMA), this method measures the tenant's pro rata portion of the entire office floor, excluding elements of the building that penetrate through the floor to areas below. The rentable area ofa floor is fixed for the life ofa building and is not affected by changes in corridor size or configuration. 2. Useable-this method measures the actual occupied area of a floor. The amount of useable area on a multi-tenant floor can vary over the life of a building as corridors expand and contract and as floors are remodeled. Because of its single occupancy, single-tenant floors have larger usable than multi-tenant floors. The usable area of an office is found by measuring to the finished surface of the office side of the corridor and other permanent walls, to the center of demising walls that separate the office from adjoining usable areas, and to the inside finished surface of the dominant portion of the permanent outer building walls.