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Triple Net Lease (NNN)
A commercial lease structure where the tenant pays base rent plus property taxes, building insurance, and common area maintenance expenses.
A Triple Net Lease (NNN) is a commercial real estate lease structure where the tenant agrees to pay their base rent plus their proportionate share of three net expense categories: real estate property taxes, building insurance, and common area maintenance (CAM).
This structure shifts operating cost fluctuation risks from the property owner to the occupant.
Frequently Asked Questions
What expenses are typically excluded from a commercial NNN lease pass-through?
Standard exclusions include structural roof or foundation replacements, leasing commissions, executive salaries, financing interest, and landlord corporate overhead.
How does a Triple Net Lease differ from a Gross Lease?
In a Gross Lease, the tenant pays a flat rent while the landlord covers all property taxes, insurance, and maintenance. In a NNN lease, the tenant pays base rent plus proportional pass-through costs directly.
More in Leasing
See all Leasing terms →Assignment of Lease
The complete legal transfer of an existing tenant's entire leasehold rights, obligations, and physical occupancy to a new incoming tenant.
Read definition →Base Rent
The fixed minimum monthly rent agreed upon in a lease agreement, excluding utilities, janitorial, or shared operating expense pass-throughs.
Read definition →Co-Tenancy Clause
A commercial lease clause granting rent reductions or termination rights if anchor tenants vacate or center occupancy falls below agreed levels.
Read definition →Continuous Operation Covenant
A commercial lease requirement obligating a retail tenant to keep its store open, fully stocked, and staffed during designated business hours.
Read definition →Escalation Clause
A commercial lease provision specifying annual rent increases tied to a fixed percentage, stepped rates, or the Consumer Price Index (CPI).
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