Lease - what is the difference between 'triple net' (NNN) and 'modified gross' lease type?

In Leasing Property - Asked by Lew P. - Jul 21, 2014
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Answer(s)

Sam D.
Owner/Investor
Morrisville, NC

The problem with the commercial real estate world is there is not a a standardized language.
NNN typically means tenant pays for taxes, insurance and common area maintenance ( also known as TICAM)
Modified gross is typically where the tenant pays a portion of these expense like maybe just taxes or cam.
The best thing to know if you want to understand what the lease. RTDL
READ THE DARN LEASE. Please don't take anyone's word for what a lease is. You would be amazed at how many brokers cannot even answer this question.or market a property with the wrong information.
Always to be safe review the lease language on any deal before you commit to buying and wasting your time.

Jul 22, 2014
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John C.
Broker/Agent
Augusta, GA

there is no real NNN just motificaltion to the lease that should be read and read again, before presenting property as a NNN, there is always something needs to be addressed to get to the true NOI, which is often used as a measure of the value of the property, or at lest a component of the value. never take anyone's word for what is in a lease, lots of pit falls!

Jul 23, 2014
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Chris R.
Broker/Agent
Denton, TX

Different regions interpret these terms differently. Read the proposed lease and understand what it says and who is asked to pay for what with what adjustments.

Aug 16, 2014
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