What are the three primary types of commercial leases?

The three primary types of commercial leases are indeed gross, net, and percentage leases.

A gross lease is characterized by the landlord covering all operating expenses, such as property taxes, insurance, and maintenance. The tenant pays a set amount of rent, which simplifies budgeting since the tenant does not have to worry about fluctuating operating expenses.

A net lease requires the tenant to pay a portion of the property expenses in addition to the base rent, which can include property taxes, insurance, and maintenance costs. This type of lease comes in several forms, including single net, double net, and triple net, depending on the distribution of expenses.

A percentage lease ties rent to the tenant's revenue, typically used in retail spaces. In this arrangement, tenants pay a base rent plus a percentage of their sales, incentivizing landlords to ensure the commercial property attracts customers.

The other answer choices refer to different contexts or types of leasing that do not apply directly to the commercial real estate sector. For example, fixed and variable typically describe the nature of the rent structure rather than types of leases, while the mention of longer or short-term leases pertains to the length of time rather than the fundamental lease structure. Residential and agricultural leases represent different property categories and do not focus specifically