When you are researching office space lease options you will notice that Landlords and buildings owners quote lease rates differently. You will hear terms like NNN, FS, MG, etc. Do you know what all those mean? If not you need to ask! I even ask after 8 years of being in the business because what I have found is that some landlords and listing agents interpret the meanings differently. So I would rather play on the dumb side and ASK so I know FOR SURE what I am expected to pay before I sign on the dotted line.
NNN (aka Triple Net or operating expenses) – Tenants are expected to pay 100% of the operating expenses which include taxes, insurance and maintenance IN ADDITION TO the quoted based rent. Depending on the market you are in and that particular landlord Electric and janitorial are typically included unless it’s retail space or some hybrid office space. An example would be $17 + $11 nnn
FS (Full Service) – The quoted rent that the tenant pays includes the base rent and operating expenses. The landlord pays for all operating expenses. An example would be $28 sf
MG (Modified Gross) – Tenant pays for the landlords quoted(which includes operating expenses) rent PLUS E&J (electric & janitorial).
Again at the end of the day you need to ask what you are responsible for paying for. You don’t want to be surprised to find out you owe money for something that you thought was included in your monthly rent. This way it will be easier to do an apples to apples comparison of each office space.