Triple Net Lease (NNN)

A Triple Net Lease (NNN) is a type of rental agreement where the tenant is responsible for paying not only the rent but also all associated property costs. This includes property taxes, insurance, and maintenance expenses. Essentially, the landlord receives a more stable income since most operational costs are shifted to the tenant. This arrangement is commonly used in commercial real estate, allowing landlords to have less management responsibility while tenants often enjoy lower base rental rates.