What type of lease would typically favor the landlord in terms of expense coverage?

A triple net lease typically favors the landlord because it requires the tenant to cover all operating expenses associated with the property in addition to the base rent. These expenses usually include property taxes, insurance premiums, and maintenance costs. This arrangement effectively transfers much of the financial risk and responsibility of property upkeep from the landlord to the tenant, allowing the landlord to receive a more predictable and stable income without the burden of managing these expenses themselves.

In contrast, a gross lease generally has the landlord covering most expenses, which may not favor their financial interests as much. A base year lease establishes a baseline for operating expenses for tenants, generally sharing some cost responsibilities between landlord and tenant, which might not provide the landlord the full tax benefits as seen in a triple net lease. A percentage lease ties rent to the tenant's sales performance, which can be beneficial for landlords but does not ensure that basic operating expenses are consistently covered by the tenant.