What type of lease requires the tenant to pay all operating expenses associated with the property?

A triple net lease is a type of lease where the tenant agrees to pay all operating expenses associated with the property in addition to the base rent. This typically includes expenses such as property taxes, insurance, and maintenance costs. Under this arrangement, the landlord's financial obligations are minimized, leading to greater predictability in revenue for the property owner.

In a triple net lease scenario, the tenant takes on more responsibility, which can provide them with lower base rent costs compared to other lease types that may bundle some of these expenses into the rent. This structure is particularly common in commercial real estate, where tenants may have specific operational needs and preferences for how property expenses are managed.

Other lease types do not allocate the same level of responsibility for operating costs to the tenant. For example, in a net lease, the tenant may be responsible for some but not all expenses, while in a full service lease, the landlord typically covers most, if not all, operating costs. An operating lease is usually more focused on the use of the asset rather than expense allocation.