What do NNN, FS, FSEJ, and MG stand for?
These acronyms refer to the way that building operating expenses are paid for. The components that make up operating expenses include property taxes, common area maintenance, property insurance, utilities and janitorial service.
The most common types of leases are:
NNN (triple net) – the tenant pays for all of the operating expenses in addition to the rent
FS (full service) – the landlord pays for all of the operating expenses, which are included in the rent. Phone and internet are paid by Tenant.
FSEJ (full service excluding janitorial) – the landlord pays for all of the operating expenses, except for janitorial service, phone, and internet.
MG (modified gross) – the landlord pays for all of the operating expenses except utilities, janitorial, phone and internet.
Move Your Office can help you analyze each prospective property to determine the actual cost of occupancy, based on how the operating expenses are handled.