Finally, as part of a NNN lease, most leases require reconciliation that needs to be completed by a certain date. The details are generally outlined in the lease. And if the reconciliation is not completed on time, then landlords may have to forfeit any money that they would receive back....
What is a triple net (NNN) lease? 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 NN...
What Does 'NNN' Mean in Commercial Real Estate? What Is a Nonqualified Dividend? What Is Net Asset Value? What Is a Non-Disclosure Agreement (NDA)? What Is Negative Carry? What Is a Non-Compete Clause? What Does Net-Net Mean?
1. What is a triple net lease (NNN lease)? An NNN lease is a type of lease agreement commonly used in commercial real estate. In this type of lease, the tenant is responsible for paying the net lease amount as well as all operating and maintenance expenses for the property. ...
The only way for a tenant to ensure operations under a true NNN lease is to read the agreement in its entirety. It is not uncommon for landlords to use terms like “triple net,”“full service” or “modified gross” in the lease language, but those words might not reflect the terms ...
What Does Base Rent Mean in an Office Lease? By: Taylor McHargue, SIOR When looking at leasing office space for the first time, you may encounter a number of commercial real estate terms that you’ve never encountered before. If it seems confusing, it’s not your fault. The ...
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 thus the owner receives nothing(tenant with an excellent cred...
But this doesn’t mean that technology companies as rule don’t pay out dividends. IBM pays a dividend, but of course IBM is a much more mature company than say Google or certainly Facebook. Apple pays a dividend as well, but of course it does have something like $160 billion in cash...
This does not mean the tenant will only be allowed to use 10% of the space, but rather that 10% of the common area square footage will be added on to the tenant’s square footage number in the lease.Rentable square feet is used to determine your annual base rent expense. To do ...
Understanding Triple Net Leases (NNN) In commercial real estate, anet leaseis a contract in which the tenant pays a portion or all of the taxes, fees, and maintenance costs. A triple net lease requires that the tenant pay the building'sproperty taxes, building insurance, and the cost of ...