In Leasing Property - Asked by Ali H. - Jul 29, 2009
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Robyn M.
Campbell, CA

Hello Ali,
In my experience, NNN represents a tenant with a "triple net lease" ... a lease where the tenant pays all expenses related to the property.

Jul 29, 2009
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Chris G.
Lynchburg, VA

I think that what you are referring to may be the estimated "triple net" charges that the landlord is charging the tenant for. In most cases these expenses are estimated based on the previous year's amounts and then reconciled at the end of the year. Your landlord is estimating what these costs are going to be and you are paying your prorata share of these during the year. Usually you would reconcile the difference once the exact costs are determined.

Jul 30, 2009
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Paul S.
Glendora, CA

A NNN lease means the tenant pays all the expenses relating to the property. What you pay to the landlord is net to the landlord. In the case of a property that has multiple tenants it would mean you pay 100% of the expenses attributable to your portion. Something less than NNN say NN or N would mean the landlord would have some responsibility for something, say the roof. The less N's the more the landlord is paying for until you get down to what is referred to as a gross lease (landlord pays everything).

Jul 31, 2009
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Chris S.
Coeur D'alene, ID

NNN - Triple Net Lease Structure
Tenant pays rent plus their pro-rata share of utilities, property taxes, insurance, repairs and maintenance, management, janitorial, etc. etc. These are usually estimated and then quoted to potential tenants on a per square foot per month or per square foot per year basis. In our neck of the woods a common NNN charge is around $0.40/SqFt/month for retail.

Aug 3, 2009
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Gregory G.
San Francisco, CA

Their best guess as to what property insurance, tax, and maintenance will cost. Should be around .40 a foot.

Sep 1, 2009
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