Tenants in an NNN lease have more autonomy to pursue design, construction, and maintenance choices because they put more money in than with other leases. This is perfect for investors who don’t want the crushing responsibility of being a landlord but also want more control over their property....
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 ...
A Triple Net Lease (NNN Lease)is the most common type of lease in commercial buildings. In a NNN lease, the rent does not include operating expenses. Operating expenses include utilities, maintenance, property taxes, insurance and property management. What should be included in a lease? Here a...
The main drawback, besides the lower rent, is that the landlord is taking a risk in making the tenant responsible for maintenance; if the tenant does a bad job, the landlord may have to either face additional costs, or go through the hassle and expense of enforcing the lease. There is ...
You will typically see this written out as $20 NNN + opex. What Does Base Rent Include? This is where the landlord will derive profit from the building. The base rent of a space is the most realistic indication of the market value of the real estate. ...
Common area maintenance is one of the three main components that make up operating expenses, the other two being insurance and property taxes. This, in turn, makes CAM part of what is called a Triple Net (NNN) Lease. For more information on triple net leases, read our Guide to the ...
Sometimes the term “rentable building area” or “gross building area” is used to include the leased space plus the common areas.1 How Does Common Area Maintenance Work? CAM fees are part of the terms in acommercial real estate leaseagreement, so it’s important to understand how they...
A tenant with an excellent (investment grade) credit rating Triple Net NNN Lease terms Long-term leases (minimum 20 years) Low cap rates Single tenancy As the name suggests, it involves direct transfer of the net operating income or NOI of the property to pay down the debt taken on, and...
Typical Types of Commercial Leases in Austin, Texas (NNN lease vs. Gross lease, more) Thomas Matheney Related Content Article How Much Does It Cost to “White Box” Commercial Space? Article 34 Commercial Property Management Terms You Should Know (Glossary with Definitions) ...
What Is a Triple Net Lease (NNN)? A triple net lease (triple-net or NNN) is aleaseagreement on a property where the tenant promises to pay all expenses, including real estate taxes, building insurance, and maintenance. These expenses are in addition to the cost of rent and utilities. NN...