A triple net lease has risk for both the tenant and landlord (lessor). The Bad: For the tenant, there are some unknown variables that might cause a problem. Take for instance rising costs. A triple net lease might have some sort of cap, but likely, a tenant would be forced to cover rising taxes and insurance rates.
What is the full form of NNN?
A triple net lease (triple-Net or NNN) is a lease agreement on a property whereby the tenant or lessee promises to pay all the expenses of the property including real estate taxes, building insurance, and maintenance.
How are NNN costs calculated?
Lease Rate: $20.00 /SF NNN (Estimated NNN = $3.25/SF), meaning the base rental rate is $20.00 per square foot per year and the property expenses, which include property taxes and insurance, are estimated to be $3.25 per square foot per year, though they can fluctuate from year to year.
What does NNN mean in real estate in New York?
, Real Estate Broker in New York State. A Triple-Net lease (NNN) is a lease under which the tenant’s rent is received net of all three catagories of operating expenses: taxes, maintenance and insurance.
What should you know about the triple net ( NNN ) lease?
With that said, in order to fully understand the NNN lease you must first understand the spectrum of commercial real estate leases. All commercial real estate leases fall somewhere along a spectrum with absolute net leases on one end and absolute gross leases on the other end.
What does it mean to pay nnn for office space?
For example: say the Office Space listing you’re interested in says the rent is $24.00 NNN per sqft/year. The $24.00 number is your Base Rent. That’s the minimum amount that you pay in rent just to lease the space. In addition to Base Rent, you will pay have to pay additional money to cover the Operating Expenses (or NNN or Triple Net Expenses).
How much does NNN cost per square foot?
Using our example above, say the commercial real estate agent tells you the NNN charges/expenses are $6.00 per square foot, per year. Then to find out your total monthly rent, you will have to add the $24.00 base rent and add $6.00, then divide by 12 months, then multiply by the total square feet you will be leasing.
