The term “Commercial Real Estate” can be used to refer to any dealing with real property in a business context. It could involve leasing out office space, owning an apartment complex, buying or selling real property along with and as a part of the sale of a business and many other types of transactions and forms of ownership.
A commercial real estate broker is a professional that has been licensed to assist clients in buying, selling and leasing real estate. A commercial broker mainly works with property that is used for commercial or business purposes while residential real estate agents mainly deal with private homes and condominiums.
Commercial real estate agents receive a “commission” or a small portion of the total sale price or lease value upon the seller & buyer or owner & tenant signing contracts. The amount is usually between 4% & 6% of the sale price or total lease value.
A triple net lease (triple-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three “nets”) on the property in addition to any normal fees that are expected under the agreement (rent, utilities, etc.).
In a gross lease is a type of commercial real estate lease where the tenant pays a flat rental amount, and the landlord pays for all property charges regularly incurred by the ownership, including taxes, utilities and water. Most apartment leases resemble gross leases.
A modified gross lease is a type of real estate rental agreement where the tenant pays base rent at the lease’s inception but in subsequent years pays the base plus a proportional share of some of the other costs associated with the property, such as property taxes, utilities, insurance and maintenance.