PROPERTY & LEASING

NNN lease

Also called: triple-net lease · net lease · NNN

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PLAIN-ENGLISH DEFINITION

A lease structure in which the tenant typically bears specified property expenses such as taxes, insurance and maintenance, subject to the actual lease language.

What it means in practice.

“Triple net” is a market label, not a guarantee that the landlord has zero obligations. Roof, structure, capital items and administration can vary significantly by lease.

Why it matters.

NNN properties are popular in replacement-property searches because of perceived management simplicity, but lease and tenant credit need full underwriting.

Additional notes.

“Triple net” is a market label, not a guarantee that the landlord has zero obligations. Roof, structure, capital items and administration can vary significantly by lease.

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