Does a tenant pay for restriping of the parking lot and repainting the building as part of the NNN cost?

In Leasing Property - Asked by Rod J. - Apr 5, 2012
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Answer(s)

William Z.
Property/Asset Manager
Arlington, TX

You would need to refer to your lease for the specifics of what expenses are or aren't included in computing CAM or NNN charges. Every region and lease is different based on local practicses and owner requirements.

Apr 5, 2012
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Jeff R.
Lender/Mortgage Broker
Birmingham, MI

Yes on a true nnn lease the tenant should be resonsible for all maintenace of the property. Though you should refer to the lease.

Apr 6, 2012
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Jim N.
Owner/Investor
Aiea, HI

Rod
As a former tenant and property owner, a NNN includes CAM, taxes, and insurance on the property. CAM or Common Area Mainenance includes the parking lot, grounds, and buildings. In short, yes.

Apr 7, 2012
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John C.
Owner/Investor
Naperville, IL

In my experience always...yes

Apr 7, 2012
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John M.
Broker/Agent
Irvine, CA

Rod,
You will always need to refer to your lease but my understanding of NNN leases is you are responsible for your share of the "OPERATING" expenses. Re-striping and exterior painting are capital expenses/reserve items and could be argued they are not part of the NNN expenses.
HOWEVER, if the tenant has had the exclusive us of the property for 5 years or more this expense could be AND should be passed on to the tenant.

Apr 8, 2012
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Jim B.
Owner/Investor
Las Vegas, NV

The answer is usually yes, but the lease agreement dictates, it depends on the dictates spelled out in the lease agreement.

Apr 8, 2012
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Joe K.
Broker/Agent
Winter Park, FL

Painting the building is a capital expense, and that cost " is not " typically passed onto the Tenant. Parking lot re-stiping & sealing is usually a C.A.M. expense that "is" typically passed onto the Tenant.
You should specify what is and isn't C.A.M. when using your lease. National Tenants being sharper than your local Tenants will typically specify what they will pay for under C.A.M. especially if they insist on using "their own" lease.

May 2, 2012
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Jack S.
Owner/Investor
Fort Myers, FL

This is not a NNN. Subway takes care of all their own maintenance inside and out via corp. policy.
Check store is LL responsibility.
For more info see my website below

Aug 16, 2013
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