what is nnn

In Leasing Property - Asked by Matthew S. - Aug 17, 2010
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Answer(s)

Charles R.
Broker/Agent
Fort Myers, FL

basically, it means the rent is net to landlord, ie: tenants pay all expenses including, taxes, insurance and all maintanance fees allowcated based on sq ft rented. this is usually expressed as and additional sf price called CAM, but not always. simply put, if a tenant is paying $10 psf for 1000sf, then the landlord will get that plus expenses so that he will net $12,000 at the end of the year. Hope that helps.
Charles
Prudential Fl Realty

Aug 17, 2010
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Stuart D.
Broker/Agent
East Brunswick, NJ

NNN, Means the Tenant pays all the expenses in addition to the rent.
Taxes, Common Area maintenance, Insurance, etc.

Aug 17, 2010
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Michael E.
Broker/Agent
Houston, TX

A net lease (NNN) is a lease where the taxes, insurance, and common area maintenance (CAM) is paid by the tenant in addition to the base rent determined by the landlord.

Aug 17, 2010
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Ken S.
Broker/Agent
Westlake Village, CA

The below answers are correct for your basic definition of NNN. There are deals for sale that are Single Tenant deals that are actually NN vs NNN where the Tenant pays Taxes, Insurance and CAM charges, but the Landlord is responsible for Structure and Roof.

Aug 17, 2010
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Rob B.
Chandler, AZ

Mathew....
I found the answer Charles H gave to be a bit misleading. (not intentionally, I am sure). He stated "if a tenant is paying $10 psf for 1000sf, then the landlord will get that plus expenses so that he will net $12,000 at the end of the year".
If a tenant is paying $10 psf for 1000 sf, what the landlord is expected to net is $10,000 for the year, not $12,000, as the NNN charges should be a breakeven. The landlord is not expected to make money on NNN additional charges.
Rob Baird, CA RE Lic. #544165 (One of the oldest, active licenses in CA)
951 515-5855

Aug 18, 2010
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