what is NNN?

In Leasing Property - Asked by may p. - Apr 30, 2009
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Answer(s)

Martin F.
Broker/Agent
Winter Park, FL

Triple Net

Apr 30, 2009
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Theresa or M.
Property/Asset Manager
Gillette, NJ

Net rent in other words, the rental rate exclusive of real estate taxes and common area maintenance.

Apr 30, 2009
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David A.
Broker/Agent
Tampa, FL

The lease rate is Net of 1)real estate taxes; 2)common area maintenance; 3) INSURANCE on the building (not tenant's insurance on contents, etc.).

Apr 30, 2009
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Ken S.
Broker/Agent
Westlake Village, CA

In addition to the above, it could also mean roof and structure on a single tenant building. It could include all or a portion of the management costs (sometime limited to administrative costs). Could include gross receipts taxes on the ownership entity. From a Landlord prospective a NNN lease that does not include the cost of maintaining the structure and roof has a different Net effect than a NNN lease that does.

May 1, 2009
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Paul S.
Broker/Agent
Glendora, CA

It should mean that the tenant pay all of the expenses associated with the property. The rent you pay is net to the seller. NNN leases are usually lower than gross leases where the landlord pays the expenses.

May 1, 2009
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Paul S.
Broker/Agent
Glendora, CA

Another note: A NNN lease should mean the tenant pays 100% of the expenses on the building. If the landlord pays for something it should be referred to as a NN lease or even a N lease depending on how much the owner is on the hook for. Beware that many properties are advertised as triple-net's (NNN's) when they aren't truly without owner resposibilities.

May 1, 2009
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Leah H.
Broker/Agent
Hopkins, SC

An NNN Lease is a net lease, structured as a turnkey investment property in which the tenant is responsible for paying the three major expenses associated with commercial real estate ownership."NNN" stands for "Net-Net-Net", is pronounced "Triple Net" and represents the three most common, consequential real estate related expenses:
N - Property Tax
N - Insurance
N - Maintenance
The rent the landlord receives from the tenant is net of expenses.
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Sep 28, 2012
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