What's the Difference Between NNN, Gross and Modified Gross Leases in Myrtle Beach?

Last updated: November 2026

The difference is who pays the building's operating costs. In a gross lease, the landlord pays taxes, insurance and maintenance from your rent. In a triple net (NNN) lease, you pay base rent plus your share of all three. A modified gross lease splits them, so read exactly which costs fall to you.

Two spaces with different rent figures can cost about the same, or very different amounts, once you account for the lease type. Here's how to compare them.

This guide is part of our guide to buying or leasing commercial property in Myrtle Beach.

In this guide:

• What is a gross lease?
• What is a triple net (NNN) lease?
• What is a modified gross lease?
• What about single net and double net leases?
• How do you compare leases of different types?
• Why do landlords prefer one lease type over another?
• What questions should you ask about any lease type?
• What terms should you know?
• Which lease type is best for you?
• What else do people ask about this?
• Ready to talk about commercial space on the Grand Strand?

What is a gross lease?

In a gross lease, you pay one rent figure and the landlord covers the operating costs. In a full-service gross lease, often seen in office buildings, rent may also include utilities and janitorial service.

Gross leases are more predictable for the tenant. The landlord takes on the risk of rising costs and prices it into the rent. Many gross leases include an expense stop or base year, so increases above a set level can still be passed to you. Read that section closely.

What is a triple net (NNN) lease?

In a triple net lease, you pay base rent plus your share of property taxes, insurance and maintenance. Base rent is usually lower, but your total cost can change year to year as those expenses change.

NNN leases are common for retail, restaurants and single-tenant buildings. Our full guide on triple net leases explains how they work.

What is a modified gross lease?

A modified gross lease is anything in between. There's no single definition. One version has you paying utilities and janitorial while the landlord covers taxes and insurance. Another has you paying increases over a base year.

Because the label means different things in different leases, don't compare offers by name. Compare them by the list of costs you'll actually pay.

Talk to Our Team About Commercial Space

What about single net and double net leases?

These are less common variations. In a single net lease, the tenant usually pays rent plus property taxes. In a double net lease, the tenant usually pays taxes and insurance, while the landlord handles maintenance. Definitions vary, so read the lease.

How do you compare leases of different types?

Convert every offer to an all-in monthly cost. For each space, add up:

• Base rent.
• Estimated taxes, insurance and maintenance you'd pay.
• Utilities and janitorial you'd pay directly.
• Scheduled rent increases over the term.
• Any free-rent or tenant improvement concessions.

Then look at how much each cost could change. A gross lease with a fixed increase is more predictable than a NNN lease where insurance or taxes could jump. See why CAM charges go up.

Why do landlords prefer one lease type over another?

Landlords choose lease types based on risk and the property. In a multi-tenant retail center, a triple net structure lets the landlord share rising costs fairly across tenants. In an office building where the landlord controls utilities and cleaning, a gross or full-service structure can be simpler.

Knowing why a landlord uses a certain structure helps you negotiate. If the landlord wants a NNN lease, you may get further asking for a cap on controllable costs or audit rights than asking to switch to gross.

If two spaces you like use different lease types, ask both landlords for the same information: base rent, estimated pass-throughs, actual costs for the last year or two and rent increases. That's the only way to compare fairly.

Talk to Our Team About Commercial Space

What questions should you ask about any lease type?

A few questions apply no matter what the lease is called. What costs will I pay beyond base rent? How are they estimated and reconciled? What has changed in the last couple of years? Who repairs and replaces the HVAC, roof and parking lot? Can I audit the charges? Get the answers in writing, then check them against the draft lease.

What terms should you know?

• Expense stop: A set level of costs the landlord covers in a gross lease, with increases above it passed to you.
• Base year: The year used as the starting point for passing through later cost increases.

Which lease type is best for you?

It depends on how much risk you want to carry. If you want a predictable monthly number, a gross or modified gross lease may suit you. If you want lower base rent and are comfortable with expenses that change, a NNN lease may work, especially with caps and audit rights.

The lease type is often set by the property type and the landlord, but the protections around it are usually negotiable. See what you can negotiate.

Related guides:

• What Is a Triple Net Lease, and How Does It Affect What I Pay in Myrtle Beach?
• What Are CAM Charges in a Commercial Lease, and Why Do They Go Up?
• How Long Are Commercial Leases in Myrtle Beach, and Can I Negotiate the Terms?
• How Do I Buy or Lease Commercial Property in Myrtle Beach?

What else do people ask about this?

Which lease type is cheapest?

None is automatically cheapest. Compare all-in costs, including operating expenses and rent increases, over the full term.

What is a full-service gross lease?

A gross lease, common in office buildings, where rent includes operating costs and often utilities and janitorial.

What is an expense stop?

A limit in a gross lease. The landlord pays expenses up to a set level, and increases above it can be passed to the tenant.

Is a modified gross lease standard?

No. The term covers many different cost splits. Always check which costs you'll pay.

Can I ask a landlord to change the lease type?

Sometimes, but it's often set by the property. The protections, like caps and audit rights, are usually easier to negotiate.

This article is general information, not legal, tax or financial advice. Rules and requirements change. Talk to a South Carolina attorney, CPA or lender about your situation, and confirm current requirements with the agency involved.

Ready to talk about commercial space on the Grand Strand?

Whether you are leasing your first space, buying a building for your business or adding an investment property, a short call with our team can help you sort out the options and the next steps. No pressure, and no commitment.

Schedule a Commercial Consult