Triple Net Lease
A Triple Net Lease (NNN) is a type of rental agreement where the tenant agrees to pay not only rent but also the property’s operating expenses. These expenses typically include property taxes, insurance, and maintenance costs. This arrangement shifts many financial responsibilities from the landlord to the tenant, which can lead to lower base rent in exchange for these additional costs. Triple Net Leases are common in commercial real estate, providing landlords with more predictable income while allowing tenants to have a greater control over property management.
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A triple net lease (NNN) is a rental agreement where the tenant agrees to pay not only the rent but also three additional costs: property taxes, insurance, and maintenance expenses. This arrangement shifts most financial responsibilities from the landlord to the tenant. As a result, the landlord receives a more stable income while the tenant takes on more obligations. Triple net leases are commonly used in commercial real estate, providing clear expectations for both parties regarding costs and responsibilities.