In the Spotlight: When Drafting Leases, Substance Matters

What's in a name? Nothing. A poorly drafted lease, by any name, is a poorly drafted lease. Commercial leases often use the phrase “net” to describe the scope of the parties' respective duties. The references vary (e.g., Net Lease, Net-Net Lease, Net-Net-Net Lease, Triple Net Lease, Absolute Net Lease), but are always premised on the goal of shifting owner-related duties and expenses to the lessee. However, drafters of (and all parties to) commercial leases should be aware that just using a magic phrase, such as “triple net,” is probably insufficient to automatically alter the parties' otherwise express rights and duties.