lease for $ 25 /sq f/year-lease type NNN. Does it mean 25 is base rent & you have to pay additional rent?

In Leasing Property - Asked by venkat b. - Jul 2, 2014
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Answer(s)

Bill M.
Broker/Agent
Farmington, MI

correct. NNN is short for triple net. In this instance, 25 dollars is the base rent and the net costs is going to be in addition to the base rent. The net costs are the tenants share of real estate taxes, insurance, and common area maintenance for the building.

Jul 2, 2014
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Rod A.
Lender/Mortgage Broker
Tampa, FL

If I understand your question correctly, in general I agree with Bill's response. Triple net, or NNN, or Net-Net-Net, is a term that gets thrown around rather loosely, and some people apply it to any "Net" lease agreement. More specifically, a triple net lease is one whereby the tenant is responsible for all expenses related to the property including operating expenses, both fixed and variable, as well as the responsibility for the maintenance, and repair of structural items. Anything less, technically speaking, should be identified as to a "Net" or "Net-Net" lease agreement. In short, the tenant will be required to pay the base rental rate of $25/S.F., plus, all expenses.

Jul 3, 2014
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Doyle D.
Broker/Agent
Huntington Beach, CA

Tripple net leases... I usually have an attorney check them out and make changes, there can be a lot of hidden charges that can literally overwhelm a business. I see a lot of businesses that are never prepared for major expenses that can occur, best to have caps put into the terms or max percentages based on revenues. Read three time and sign once...

Jul 3, 2014
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Jen S.
Broker/Agent
Cotuit, MA

This means you will pay $25 per square foot as your base rent, and pay an additional amount usually estimated and allocated yearly, then reconciled annually to make sure you are either reimbursed over payment, or owe additional monies for items such as snow removal, trash collection, etc.

Jul 15, 2014
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