NNN Lease (Triple Net)

Definition

A commercial lease where the tenant pays rent, property taxes, insurance, and maintenance—basically the landlord's retirement plan.

Example Usage

Under the triple net lease, the tenant was responsible for all operating costs plus a base rent of $3,000/month.

Origin

Commercial real estate terminology, standardized in the 1980s

Fun Fact

NNN leases let landlords collect checks while pretending they own nothing at all.

Source: SIOR Standards

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