What Are the Implications for Leasing vs. Owning Property?
For businesses that lease property, the property tax burden generally falls on the property owner. However, many commercial leases include a clause that passes some or all of the property tax expense onto the tenant. This is known as a triple net lease, where the tenant is responsible for property taxes, insurance, and maintenance costs. Conversely, businesses that own their property must directly handle the payment of property taxes, which can be a significant financial responsibility.