Lease structure is one of the most critical — and overlooked — elements of commercial real estate investing.
In 2026, understanding lease types is essential for managing risk and predicting returns.
What Is a Gross Lease?
In a gross lease, the landlord pays most operating expenses, including:
- Property taxes
- Insurance
- Maintenance
The tenant pays a higher base rent, but the owner absorbs cost fluctuations.
Best for:
What Is a Triple Net (NNN) Lease?
In a NNN lease, the tenant pays:
- Property taxes
- Insurance
- Maintenance
The landlord receives mostly passive income with minimal expense exposure.
Best for:
- Retail pads
- Single-tenant assets
- Long-term tenants
Why NNN Is Trending in 2026
Investors are increasingly drawn to NNN leases because they offer:
- Predictable income
- Less operational risk
- Protection against rising expenses
In Florida, NNN assets with national tenants remain in high demand.
Choosing the Right Lease for Your Strategy
There is no “better” lease, only a better fit for your goals.
Ask:
- Do I want active or passive ownership?
- Can I absorb expense volatility?
- Am I investing for income or appreciation?
Lease structure defines your risk, not just your return.
Not sure which lease type fits your investment goals? The List Orlando can help you evaluate CRE opportunities with clarity.
