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What is a Net Lease?

A net lease is a type of lease agreement in which the tenant is responsible for paying some or all of the property taxes, insurance, and maintenance costs in addition to the base rent. This results in a lower base rent for the tenant, but also gives them more responsibility for the property.


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Tree growing in a dense forest
Tree growing in a dense forest

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A net lease is a type of lease agreement commonly used in commercial real estate. In a pure lease, the lessee undertakes not only to pay the basic rent.


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