For a commercial lease, responsibility for the maintenance and repairs varies greatly depending on the nature and language of the lease agreement. For example, the lease may be a full service or gross lease in which the landlord has responsibility for most all maintenance and repairs—or the lease may be at the other end of the spectrum—a triple-net lease (NNN) in which the tenant has responsibility for most all maintenance and repairs. Or the lease may be a modified gross lease in which the landlord and tenant share responsibility for maintenance and repairs.
In Oregon, as in many other states, the responsibility for maintenance and repairs in a commercial lease is largely determined by the terms of the lease agreement itself. A full service or gross lease typically means the landlord is responsible for most maintenance and repairs, whereas a triple-net lease (NNN) places the responsibility on the tenant for the majority of these costs, including real estate taxes, building insurance, and maintenance. A modified gross lease represents a middle ground where the landlord and tenant negotiate and share the responsibilities for maintenance and repairs. It is crucial for both landlords and tenants to carefully review and negotiate the terms of their commercial lease agreement to ensure clarity on who bears the responsibility for various types of maintenance and repairs. An attorney can provide guidance on the implications of the lease terms and help negotiate a fair allocation of these responsibilities.