Structuring the lease properly will create a secure sale-leaseback for investment purposes and/or resale at a later time. The following are four different types of leases set forth below:

1. Modified Net - The tenant pays utilities, maintenance, repairs and insurance. landlord is responsible for property taxes and everything else.
2. Triple Net (NNN) - There are usually limitations on capital expenses. Tenant is responsible for property expenses including tax, insurance and maintenance
3. Net Net or Double Net (NN) - Similar to NNN lease, except that landlord may be responsible for structural damage such as roof or bearing walls.
4. Bond - The tenant is fully responsible for operating expenses, maintenance, repairs and replacement cost.

Some points to consider in lease structure:

1. Lease term. The term of the lease is usually for as long as the business needs it, anywhere from a minimum of 8 years to more than 25 years.
2. Rent Increases. Periodic rent escalations are sometimes tied to the Consumer Price Index (CPI) or are based upon pre-negotiated fixed rent increases. During periods of low to moderate inflation, rent intend to provide a consistent inflation adjusted return.
3. Financial Covenants and Event Risk Language. Provisions which include anti-dilution provisions and net worth tests for protection against loss of value because of a adverse financial event that could diminish the credit-worthiness of the tenant. The structure of lease shall ensure that the tenant is required to pay rent under all circumstances- unexpected in the normal course of business or under troubled circumstances.
4. Competitively Located Businesses in Strong Market Areas. Property that is located in competitive markets with a strong supply allows for less price elasticity.