when a lease price is listed with nnn beside it, what does that mean? Does it mean 'plus' nnn or nnn included?

In Leasing Property - Asked by Navnit P. - Feb 25, 2011
Report Abuse
Answer this Question

Answer(s)

Lee N.
Portland, ME

Plus NNN

Feb 25, 2011
Report Abuse
Rob B.
Chandler, AZ

Navnit.... It means that the proportionate annual charges for property taxes ("N-1"); property insurance ("N-2"); and, common area maintenance ("N-3") is in addition to the base rental amount listed.
The "triple-net" charges are budgeted on an annual basis and charged back through on a monthly per square foot collection. At the end of each year, usually presented by March 1st at the latest of the following year, reconciliation is provided. If too little was collected a supplemental bill is submitted to the tenant. If too much was collected a credit is given to the current year’s collection. This is the common approach. There may be hybrids of this from property to property, depending on the terms of the leases written for a property. Good luck Navnit..... Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: robertbaird@NewportCpC.com

Feb 25, 2011
Report Abuse
stephen s.
Owner/Investor
Bloomfield Hills, MI

nnn means that in addition to the stated rent (e.g. $15 nnn) you would be paying for your proportionate share of property taxes, insurance and common area maintenance. Sometimes includes also your share of roof and outer wall maintenance, depends on how the person is using the term. Leases without that last part are sometimes called NN(double net) instead of triple net.

Feb 25, 2011
Report Abuse
Michael C.
Broker/Agent
San Francisco, CA

To add to the good advice already given, I'll point out that the devil is ALWAYS in the details when it comes to additional expenses the Landlord may want to pass through. Carefully review the 'expenses' section, sometimes called 'additional rent' or 'maintenance' section in the lease. You may be surprised to find out what the Landlord is expecting you to be responsible for!
A qualified commercial real estate agent will be familiar with what is typical in the region for the particular property type can help to negotiate this to be more tenant-friendly.

Feb 25, 2011
Report Abuse
Theodore B.
Broker/Agent
Houston, TX

Plus.

Jul 19, 2011
Report Abuse
Joseph D.
Broker/Agent
Syosset, NY

All operating expenses are paid by the tenant when you see NNN which means triple net lease. Landlords typically come to me to find a tenant with a triple net lease and there is never a conflict of interest when the tenant pays the finders fee and I negotiate the lease clearly so that both sides are happy. If you are looking for a property in New York please retain a commercial agent that has been around the block a few times because you must read the lease to see what' s included and excluded from their meaning of NNN. For example, if you have an property listed by a broker with a $18NNN this means that the base rent to use the space is $18/sq. ft. plus, the tenant pays all operating expenses. Once again, NNN is referred to as Triple Net and typically means all operating expenses are paid by the tenant. Any questions e-mail; joe.coldwellbanker@gmail.com or call 631-921-0638.

Feb 26, 2012
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question