NNN vs Full Service Lease in Gainesville, FL
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Downtown Gainesville, looking southwest from SE 1st Avenue, November 2021.
An NNN lease, short for triple net, makes the tenant pay base rent plus property taxes, insurance and common area maintenance. A full service lease rolls those costs into one rent number, and the landlord pays them. That is the first thing I settle when I compare NNN vs full service lease quotes in Gainesville, FL.
For each quote, I write down which one it is. An NNN rate and a full service rate for the same building are not the same price.
Under NNN you pay three charges on top of rent
Under NNN, you pay three charges on top of rent: property taxes, building insurance and common area maintenance. The landlord passes them through, usually as monthly estimates with a yearly true-up. Your total cost moves when the building's bills move.
Under full service, also called gross, the landlord pays those costs from the rent. Janitorial and utilities may be included too, so read the lease. You see one number and a steadier budget.
Modified gross sits between the two. The landlord quotes one rent, and you pay increases in expenses above a set level, often called the base year. If you pay only the increase over the base year, the first year of the lease carries the lowest add-on.
How I compare rates in Gainesville
When I price space for a tenant, I start with the asking rate and then add the landlord's estimate of taxes, insurance and maintenance. Only then do I compare it with a full service quote. The warehouse and flex page and the retail space page cover what I check in those markets.
If you want current asking rents or recent leases for a specific property or area, ask me. I will pull them and put every number on the same basis before you decide.
Florida repealed the state sales tax on commercial rent
The Florida Department of Revenue said in TIP 25A01-04, dated 2025-07-24, that the state sales tax on commercial rent under s. 212.031, F.S. is repealed effective October 1, 2025. It added that no state sales tax or discretionary sales surtax applies to rent for periods beginning on or after October 1, 2025.
For a tenant, the line on the rent invoice that carried that tax is gone for those periods. Periods through September 2025 remain taxable. If a quote still shows a sales tax line for a period after that date, ask why.
The deed tax is a sale cost, not a lease cost
Section 201.02, F.S. sets the documentary stamp tax on deeds at 70 cents on each $100 of consideration. That applies when a building is bought and sold. It does not apply to rent. If you are weighing a lease against a purchase, count it only on the purchase side.
Put every quote on the same basis
- Ask each landlord whether the rate is NNN, modified gross or full service.
- Ask for the operating expense estimate in dollars per SF, and what it covers.
- Ask for the base year, if the lease has one.
- Ask for your pro rata share, which is your square footage divided by the building's rentable square footage.
- Ask how the landlord bills increases and whether the lease caps them.
- Convert every quote to a full cost per SF per year, then compare.
Do the math with the numbers the landlord gives you. Do not assume a figure the landlord has not stated.
The wrong structure can keep a building empty
An owner who quotes a structure tenants do not expect can lose them before the tour. My vacancy page covers how pricing and lease structure keep buildings empty. My market report covers the public numbers I watch each quarter.
Send me your quotes
Send the use, the size range, the timing and any lease quotes you already hold. Use the find space form. I read it, then call or email to set up a short first call and put each quote on one basis.
Frequently asked questions
What is the difference between an NNN lease and a full service lease?
Under an NNN lease you pay base rent plus property taxes, insurance and common area maintenance. Under a full service lease the landlord covers those costs inside one rent number. When a quote is NNN, I ask what the add-ons are.
What does NNN space rent for in Gainesville?
It depends on the property type, the building and the size. Ask me for current asking rents and recent leases for a specific property or area, and I will add the estimated taxes, insurance and maintenance so you see the full cost.
Does Florida still charge sales tax on commercial rent?
No, for periods beginning on or after October 1, 2025. The Florida Department of Revenue said in TIP 25A01-04, dated 2025-07-24, that the state sales tax on commercial rent under s. 212.031, F.S. is repealed effective October 1, 2025. Periods through September 2025 stay taxable.
Does the documentary stamp tax apply to a lease?
The documentary stamp tax in s. 201.02, F.S. applies to deeds, at 70 cents on each $100 of consideration. That is a sale cost. A lease rent check does not carry it, so do not count it when comparing lease quotes.
What should I ask a landlord for before I compare two quotes?
Ask for the operating expense estimate, the base year if the lease uses one, and your pro rata share of the building. Put every quote on one basis before you compare rent. I can run that comparison once you send me a brief.
Sources
- Florida Department of Revenue, accessed 2026-10-06
- Florida Legislature (Online Sunshine), accessed 2026-10-06