Which lease type involves the tenant covering some operating costs while the landlord covers others?

The net/net lease, commonly referred to as a double net lease, is a type of lease agreement where the tenant is responsible for covering certain operating costs in addition to the base rent, typically including property taxes and insurance. The landlord, however, is still responsible for other expenses, such as building maintenance and repairs. This division of financial responsibility allows both parties to share the burden of property-related costs while providing the tenant with a degree of control over their operating expenses.

In the context of real estate leasing arrangements, this structure can be advantageous for landlords because it reduces their financial risk and contributes to a more predictable cash flow. It also benefits tenants who may appreciate having more direct control over the expenses they are responsible for. This shared responsibility is the hallmark of a net/net lease arrangement, distinguishing it from other lease types.