what is NNN lease

Generally speaking, a NNN (Triple Net) lease is one in which the Tenant pays the property related expenses, such as property taxes, utilities, maintenance, Cam fees, insurance etc. However, mortgage payments remain the responsibility of the property owner. Be aware that NNN can mean different things to different people. Make sure all involved have the same thing in mind. An LOI is a good place to sort things out.

A lease where there is base rent + an amount estimated to cover such as taxes, maintenance and insurance. The extra amount over the base rent is such that it is an estimate and thus can be adjusted each year if actual expenses exceed the estimate - which is why landlords like that type of lease. If taxes / maintenance or insurance increases over the years - the amount the tenant would be in NNN costs would be increased proportionately. Consult an experienced commercial broker for assistance.

Tenant pays the 3 N's. Property tax, insurance, and maintenance.
A triple net lease (Net-Net-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three 'Nets') on the property in addition to any normal fees that are expected under the agreement (rent, etc.). In such a lease, the tenant or lessee is responsible for all costs associated with the repair and maintenance of any common area
This form of lease is frequently used for freestanding buildings
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Gregory Garver - Commercial Real Estate Broker
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(415)225-9894
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