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)
Aug 18, 2010