What is a Triple Net (NNN) Lease?
A NNN lease, also known as a triple net lease, is a type of commercial lease in which the tenant is responsible for paying all of the property's operating expenses, in addition to the base rent. The acronym "NNN" stands for "net, net, net," referring to the three main expenses that the tenant is responsible for paying: property taxes, insurance, and common area maintenance (CAM).
In a NNN lease, the landlord is typically responsible for maintaining the structural integrity of the building, but the tenant is responsible for everything else. The tenant pays a base rent, which is often lower than in a gross lease, and is also responsible for paying their share of property taxes, insurance, and CAM expenses. The lease agreement will specify how these expenses will be calculated and paid.