Understanding a triple net lease (NNN)

What is a Triple Net Lease (NNN)?
A Triple Net Lease is an agreement between the tenant and the property owner where the tenant agrees to pay all expenses of rental property. This includes real estate taxes (on only the space that they are renting), building expenses taxes, building insurance and maintenance. This is added to the rent and the utilities. Triple Net Lease’s are only one type of lease agreement that is common in the real estate rental business, and NNN’s are negotiable with Westview Shopping Center.

What is a Double Net Lease (NN)?
A Double Net Lease is a the same as what is listed above, except the tenant is only responsible for the property taxes (on their rental space) and insurance. This is the second most common type of net lease in the commercial rental business.

What is a Single Net Lease (N)?
Single Net leases are extremely uncommon in the commercial real estate business. In this case, the tenant is only responsible for the property taxes on the space that they are leasing.

What are the Benefits of a Triple Net Lease for the Tenant?
A NNN lease has many benefits for the tenant, however the main benefit is that this offers the tenant maximum customization and freedom with the space that they are leasing. A NNN lease generally offers a lower base rent for the tenant since they are taking additional responsibilities off of the landlord.

Additional Sources:

https://www.investopedia.com/terms/t/triple-net-lease-nnn.asp

https://www.investopedia.com/terms/t/triple-net-lease-nnn.asp