A reasonable cap for NNN is that amount that is found by a careful analysis of the costs of Taxes (N), Insurance (N) and Common Area Maintenance (N). This analysis should be based upon one's knowledge that insurance and other common area vendor relationships have been shopped carefully and managed well. What ever is the amount as a result of this analysis is the cap. It should not be otherwise, as this then would allow one tenant to attempt to dictate its fair share of expenses over fair treatment to all tenants proportionally. (However, a word of caution, sometimes the landlord may take a "hit" by supporting a lower cap. This would then be considered a tenant incentive in order to capture a true anchor-tenant)!
CA Re License #544165 (one of the oldest active licenses in CA)
May 13, 2010