An NNN (triple net lease) is a type of commercial lease wheretenantspay the base rent plus operating expenses like utilities, taxes, and insurance. A triple net lease is one of the most common commercial lease agreements in real estate investing. With NNN leases, tenants (or lessees) are ...
With a triple net lease (NNN), the tenant agrees to pay the property expenses such as real estate taxes, building insurance, maintenance, rent, and utilities. Triple net leases are commonly found in commercial real estate. Triple net leases have lower rent rates since the tenant assumes expens...
A triple-net lease, often called a “NNN lease,” is commonly used in commercial real estate. Despite their popularity, many commercial real estate professionals misunderstand triple-net leases. In this guide, learn about triple-net leases, what they do and don’t include, and some of the ...
What types of lease are there? Percentage Lease – in addition to a set rent, the tenant also pays a percentage of sales over an agreed-to threshold. Often encountered in retail leases and malls. Gross Lease – a.k.a. Full-Service Lease, whereby the rent is all-inclusive. The landlord...
Maintenance expensesconstitute a substantial part of the “three nets” in NNN leases. In contrast to traditional leases where landlords oversee property maintenance and repairs, NNN leases place this responsibility squarely on the shoulders of the tenant. Tenants are required to handle routine upkeep,...
How long do commercial leases last? "Commercial leases typically last fromthree to five years, creating a long-term relationship between the lessor and lessee." Although this may sound very similar to a residential lease, there are some important distinctions between a residential lease and a busi...
Space Leases In the case of commercial property, the building has beenconstructed as an investment with the hopes of bringing in tenants. There are only two entities in this transaction, and any compensation for the initial investment in the building is baked into the lease rate as part of th...
consuming process that requires a lot of experience and knowledge of commercial leases. When looking for a commercial lease property, keep in mind that you may be quoted the base rental rate, so make certain to ask if there is a NNN charge or any other monthly fees associated with the ...
NNN leases present the biggest challenge as well as the greatest opportunity for tenant dentists to negotiate. A dentist with an experienced professional reviewing and negotiating a NNN lease may wish to negotiate caps on the annual amount that costs can increase under the NNN lease, exclusions for...
For office leases, this rate is often quoted on a square foot per year basis, meaning that a 10,000-square-foot tenant paying a base rate of $20 per square foot will be paying $200,000 a year in base rent. You will typically see this written out as $20 NNN + opex. ...