What does IG mean in a lease?

What does IG mean in a lease?

Industrial Gross (IG) Lease. Lease type in which tenant pays most but not all operating expenses in the base rate. In addition to base rent, tenant pays utilities, common area maintenance, and often the increase in property taxes and insurance over base year.

What is the difference between gross and net lease?

A net lease is the opposite of a gross lease in terms of payment for utilities, taxes, repairs and any other additional expenses. In a net lease, the predetermined rent is typically lower and the additional costs aren’t included in that set rate.

What is PSF IG?

IG stands for, Industrial Gross rent. In some markets, IG Rent is also referred to as Modified Gross (MG) rent. For Example: Say the quoted IG Rent is $12.00 per square foot, per year and you’re leasing 5,000 square feet. Well, then you would be paying $60,000 in rent per year, or $5,000 per month.

What is a gross lease agreement?

A gross lease is a lease that includes any incidental charges incurred by a tenant. The additional charges rolled into a gross lease include property taxes, insurance, and utilities. Gross leases are commonly used for commercial properties, such as office buildings and retail spaces.

What does Triple Net mean in a lease agreement?

A triple net lease (triple-net or NNN) is a lease agreement on a property whereby the tenant or lessee promises to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance.

What is a modified gross lease?

A modified gross lease is a type of real estate rental agreement where the tenant pays base rent at the lease’s inception, but it takes on a proportional share of some of the other costs associated with the property as well, such as property taxes, utilities, insurance, and maintenance.

What is the most common lease for retail property?

Most Common Retail Leases for Commercial Properties

• Single net lease. A single net lease, or net lease, is an arrangement where the tenant pay for utilities and property taxes.
• Double net or NN lease. A double net or NN lease is similar.
• Triple net or NNN lease.
• Full-service gross or modified lease.

What does PSF yr mean?

Net Effective Rent (“NER”) is a calculation done to determine what rent is being offered to a landlord net of all other costs and as a dollars per square foot (“PSF”) number. It is calculated by taking the total rent paid over the term of a lease and deducting all inducements being asked by the tenant.

What is an example of a gross lease?

A gross lease is one in which the landlord takes full responsibility for most expenses associated with a property, excluding the tenant’s personal utilities and insurance. For example, a gross lease may exclude utilities requiring the tenant to absorb those costs. You just studied 22 terms!

What is a modified gross rate?

What does IG Stand for in industrial gross lease?

(IG) is a common abbreviation for Industrial Gross. The abbreviation can be used when referencing both Industrial Gross Lease and Industrial Gross Rent. ‘IG’ is commonly found on lease abstracts or offering memorandums. Why Do a Triple Net Lease?

What does IG Stand for in real estate?

As you’re searching through commercial real estate investments on the market, you may come across the term “IG” or “IG Rent” on certain properties suited to industrial business or warehousing.

What’s the difference between an Ig and a FS lease?

A full service or FS lease is one that includes the above expenses for the first year (Base Year) of the lease and then annual increases are passed through to the tenant (s). An industrial gross or IG lease covers property taxes and insurance in the Base Year.

How much does IG rent per square foot?

For Example: Say the quoted IG Rent is $12.00 per square foot, per year and you’re leasing 5,000 square feet. Well, then you would be paying $60,000 in rent per year, or $5,000 per month.