What characterizes a straight lease?

A straight lease is characterized by a constant or fixed rental rate throughout the entire term of the lease agreement. This means that the tenant knows exactly what their monthly or yearly payments will be for the duration of the lease, allowing for easier budgeting and financial planning.

This stability is beneficial for both tenants and landlords, as it eliminates uncertainty regarding future rent increases and simplifies the lease agreement. In contrast to other lease structures that incorporate variable rates, seasonally adjusted rents, or sales performance fees, a straight lease provides clarity and consistency, which can be particularly advantageous in long-term property agreements.