Which type of lease typically requires the tenant to pay property taxes?

A net lease is a type of lease where the tenant is responsible for paying certain operating expenses in addition to their base rent. This commonly includes property taxes, insurance, and maintenance costs. The terms can vary, but in commercial real estate, net leases are structured so that tenants have more responsibility for the costs associated with the property, which can be beneficial for landlords seeking to reduce their exposure to fluctuating operating expenses.

In a gross lease, the landlord typically covers all property expenses, including taxes, so the tenant pays only a fixed rent amount without worrying about additional costs. The modified gross lease blends elements of both the gross and net lease, where certain expenses may be shared or passed on to the tenant, but property taxes are not universally included as they are in a net lease. A vacancy lease is not a recognized term in leasing practices and does not pertain to property tax responsibilities. Thus, the net lease is specifically designed to have tenants take on more financial responsibilities, including the payment of property taxes.