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?
But if the building is older, the landlord might be responsible for repairs, even though the lease is a triple-net commercial lease. 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 ...
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 ...
How NNN Expenses Change from Year to Year In most cases, additional expenses will change at the beginning of each year. Often these expenses will increase, though it’s also possible for them to decrease. If you look through a commercial lease, you’ll see that additional expenses are estima...
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 ...
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. ...
Costs:it is customary in many markets and for many types of commercial properties for the tenants to pay things like maintenance, insurance, and even property taxes (Google “NNN” for elaboration). Longer leases:while it’s rare for a residential lease to be longer than 12 months, it is ...
Debt free property: The property will be clear of the debt by end of lease term. ZeroNNNinvestment properties have many other nuances, which can be best understood bycallingyour expert commercial real estate advisors at the Triple Net Investment Group....
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 ...