How do I calculate a NNN lease if I have a Gross lease in place?

e.g. My client is paying $4000 per month Gross lease. How do I calculate CAM, taxes and insurance for this Lease?
In Leasing Property - Asked by Zvonko V. - Dec 26, 2009
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Answer(s)

Alan A.
Broker/Agent
Lansdale, PA

1. ask the landlord
2. taxes are public record
3 insurance usually runs .30-.50 SF
4 landscaping, snow and parklots usually run $1/SF
5 Gross Lease - Expenses=NNN

Dec 26, 2009
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Michael S.
Broker/Agent
Westlake Village, CA

Not sure why you would need to know what the expenses are if your client is on a gross lease, but the only real way is to ask the Landlord what the expenses are running. You cannot just estimate them since they are very different in every state. The other answer given talks about snow removal, but if the proeprty is in a state like CA than you don't have to deal with that, but you may have to deal with parking lot attendants or valet, security guards, etc. and you cannot guess on what these expenses are.

Dec 28, 2009
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Robert B.
Owner/Investor
Boardman, OH

Its yearly gross lease rate - landlord yearly expenses which would = a NNN yearly lease amount

Jan 4, 2010
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