What is a Triple Net Leased Investment?
A Triple Net Lease is sometimes described as a Net/Net/Net lease, an Absolute Net lease, or a NNN lease. The term refers to a lease agreement wherein the tenant or lessee, agrees to pay in addition to the base rent, real estate taxes, maintenance, insurance, utilities, landscaping maintenance, as well as being responsible for all costs associated with maintenance of the structure of the building as well as parking lot, if any. In a Triple Net Lease rents on a per sq. ft. basis, are typically lower than a standard “gross rent” lease. In a gross rent lease the tenant typically pays a base rent and often, common area maintenance fees only. This leaves the landlord obligated for all operating costs, including taxes, maintenance, management, utilities etc. NNN leased properties are most often single-tenant commercial, industrial or office properties with long term leases and often backed by the parent company or corporation. Commercial properties of this type are frequently leased to nation
