When viewing NNN rates, does this include NNN costs? Or are thy separate?

For example, $2.75 NNN per month. Are the NNN costs separate as though they are not advertised. Or does the $2.75/sf include everything? Thanks.
In Leasing Property - Asked by K. O. - Nov 3, 2010
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Answer(s)

Jessica M.
Owner/Investor
Jacksonville, FL

Typically NNN means the tenant will pay taxes, insurance and operating expenses while in the space. Landlord typically pays for any structural work.
But all expenses are addressed in the lease, so read the lease and cover every imaginable expense so it is clear who pays. Each lease stands alone and defines who pays for what event.

Nov 3, 2010
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Rolando L.
Broker/Agent
Dallas, TX

Typically, the quoted rental rate does not include what the NNN amount will be. In your example, the $2.75 is the Base Rent and the NNN amount will be in addition to this amount. Some Landlords will also publish what the NNN amount is and some don't not necessarily with the intention of hiding that amount, but sometimes the NNN will fluctuate depending on property taxes, actual CAM amounts versus projected and of course Property Insurance. Hope this helps.

Nov 3, 2010
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Gerald T.
Broker/Agent
Edmonton, AB

Rolando and Steve pretty much covered it all. Just remember there is no dictionary definition of NNN or Net or Net Net and so when comparing your lease to other comparable offers there are myriad variations of so called Net leases. If it is actually marketed as NNN, you are likely responsible for all the expenses Steve mentioned.
Read the lease carefully as there really is no such thing as a "Standard Lease".

Nov 4, 2010
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Michael J.
Fort Lauderdale, FL

Be wary of your operating expenses. They WILL increase over time and as assets are sold and are reassessed by the tax collector.

Nov 5, 2010
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