Which lease structure would be more favorable to a landlord in terms of covering unexpected costs?

A triple net lease is more favorable to a landlord for covering unexpected costs because it places the majority of financial responsibilities on the tenant. In this lease structure, the tenant is responsible for not just the base rent, but also for insurance, property taxes, and maintenance costs. This arrangement provides the landlord with a predictable income stream, as they are less exposed to fluctuating expenses that can arise from property ownership.

In contrast, other lease types, such as gross and modified gross leases, require landlords to cover most expenses related to the property, which can lead to unpredictable costs impacting their net income. A net lease also shifts some costs to the tenant, but it may not cover all operating expenses like a triple net lease does. Therefore, a triple net lease significantly reduces a landlord's financial risk, making it the most favorable structure for managing unexpected costs.