In what type of lease does the tenant pay a share of real estate taxes and operating costs?

In a Triple Net Lease, the tenant is responsible for covering not only the rent but also a significant portion of the operating expenses associated with the property. This system typically includes paying for their share of real estate taxes, insurance, and common area maintenance costs.

This lease structure places a greater financial responsibility on the tenant compared to other types of leases. As a result, landlords often favor Triple Net Leases because they limit their own financial exposure and place the onus of property-related costs on the tenant.

In contrast, a Gross Lease generally includes all expenses in one single rental payment, leaving the landlord responsible for taxes, insurance, and maintenance. A Modified Gross Lease, while sharing some cost responsibilities between landlord and tenant, typically does not require tenants to cover all real estate taxes and operating expenses to the extent seen in a Triple Net Lease. A Percentage Lease usually involves rent based on a percentage of the tenant's sales and may not require them to pay direct operating costs or taxes.