What is the difference between NNN, IG, and FS leases?
A triple net or NNN lease is a type of lease where the tenant pays for the operating expenses including utilities, janitorial, water, sewer, garbage, management, and property insurance expenses. A full service or FS lease is one that includes the above expenses for the first year (Base Year) of the lease and then annual increases are passed through to the tenant(s). An industrial gross or IG lease covers property taxes and insurance in the Base Year. Tenants then have increases passed through in subsequent years. IG leases often call for a common area maintenance (CAM) charge.
