A Commercial Lease is an exchange contract between UNDP and a private company, In exchange for the usage of the asset, the landlord/lessor receives a payment or series of payments. Commercial Leases are generally contracted for office space and, in certain cases, for different types of equipment.
A Finance Lease is a capital lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may not eventually be transferred, even though UNDP does not hold legal title during the duration of the lease
A Lease is “an agreement whereby the lessor (landlord) conveys to the lessee (UNDP) in return for a payment or series of payments the right to use an asset for an agreed period of time”.
An Operating Lease is a lease other than a Finance Lease. For office space, a Lease that has been formulated and agreed following UNDP’s Standard Lease Template will be an Operating Lease.