What is a triple net lease?

In Leasing Property - Asked by Maurice M. - Jun 10, 2015
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Steve G.
Broker/Agent
Montreal, QC

There was an excellent article in Forbes recently (6/02/2015), "Negotiating a Commercial Lease? Here's What You Need To Know," by Clint Gharib: he defines a triple net lease as the following: "Triple Net Leases: tenant responsible for all costs of the building, except the landlord is generally responsible for structural repairs."
He also defines many other types of leases. Good read. I hope the above helps. The link to the educational article is below.

Jun 10, 2015
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Randolph G.
Broker/Agent
Boca Raton, FL

A triple net lease is where the tenant pays rent to the landlord, plus pays these three items in addition:
1. Taxes
2. Insurance
3. Utilities
Triple net leases are common in multi-tenant office, industrial, and retail properties. Also, very common in single-tenant long-term leased properties (like fast food, pharmacies, and other national retailers). There are volumes written about their history. And this type of lease makes it easy to calculate financing and an investor's return.

Jun 14, 2015
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Candice A D.
Broker/Agent
Fort Mohave, AZ

It's 'usually' a lease in which the owner's property taxes, building insurance and common area maintenance costs (or a portion of those in multi-tenant buildings) are passed through to the tenant. However, net charges are not necessarily confined to those three, and can include other costs passed through to the tenant.

Jun 22, 2015
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Lou M.
Broker/Agent
Chico, CA

A lease agreement that designates the lessee (the tenant) as being solely responsible for all of the costs relating to the asset being leased in addition to the rent fee applied under the lease. The structure of this type of lease requires the lessee to pay for net real estate taxes on the leased asset, net building insurance and net common area maintenance. The lessee has to pay the net amount of three types of costs, which how this term got its name.

Jul 13, 2015
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