What is a Triple Net Lease? (NNN)

In U.S. Real Estate, "Net Lease" is a term used to signify a lease structure in which the tenant or lessee is responsible for paying a portion of or all of the common expenses related to real estate ownership, in addition to the base rent. These are divided into three categories referred to as the three nets which are property taxes, insurance, and maintenance. The rent collected under a net lease, is net of expenses. It therefore tends to be lower than, for instance, rent charged under a gross lease. Net lease types include single net, double net, triple net and even bondable triple net leases. The term "net lease" is often used as a shorthand expression when referring to NNN leases.

NNN-The difference between NNN, NN and N?

Triple Net Lease (NNN)

With a Triple-Net lease, the tenant is responsible for all of the taxes, maintenance and insurance. Sometimes owners will hire outside management to make certain that the tenants are handling their responsibilities. However it’s common that these corporate tenants have their own real estate departments who oversee their franchisee obligations and duties to the landlord.

Double Net Lease (NN)

With this type of lease tenants are often responsible for the real estate taxes and insurance. The owners are usually responsible for some aspect of the physical roof or parking lot. However each lease can be a little different.

Single Net (N)

The landlord is often responsible for the structure of the building and the roof. The landlord will also pay for the real estate taxes and operating expense but they will be reimbursed for some portion of these expenses. Single Net properties are the least common type of net lease opportunities.