First, you must make the distinction between Gross Rent, which includes the Base Rent and the NNN expenses (tax, insurance, and cam), and Net Rent, which will usually show the portion attributable to Base Rent only, followed by NNN. Example: $16 NNN means you will pay $16 in Base Rent (amount needed to cover debt and equity) and an additional charge for each of the NNN expenses (Tax, Insurance, Common Area Expenses). The Tenant will pay an estimated charge for the NNN's each month and that will be reconciled each year with the actual expenses for the property, and a credit or debit applied to the Tenant's account. So, your rent will always include a portion for Debt & Equity, Taxes, Insurance, and Common Area Maintenance. You just have to know the symbols and language for each type of quote.......Gross or Full Service, Modified Gross, Industrial Gross, Net (including Triple Net). Just make sure that you have accounted for all four of the major components named above.
Ingram Companies (Coldwell Banker Commercial Ingram Group)
Mar 7, 2013