• For over 14 years (since 2008), we've operated a warehouse locator service to find industrial space (warehouse, flex, manufacturing...) for you
  • All types of businesses and uses - lease, rent, sale, or purchase
  • Let us perform a FREE WAREHOUSE SEARCH for you, too!
  • No Gimmicks. No Hassles*. Just Quality Brokerage Services!

(* Disclaimer: Okay, okay - Real Estate does tend to throw a few knucklers, but we'll get you through them.)

Triple Net (NNN) - Types of Commercial Leases - Part 2

Last Updated Aug. 11, 2019

See Our List of Metro Home Pages and Select/View Yours

The Cogs of Industrial LeasingTriple NNN or Triple Net - A NNN lease is set up to have the Tenant pay a base rental amount each month to the Landlord.  In addition to the base rent, the Tenant also reimburses the Landlord monthly for the tenant’s pro-rata share of certain estimated expenses (“reimbursables”). These expanses may include property taxes, property insurance, and Common Area Maintenance (CAM)  “Reimbursables” are those expenses the landlord pays for out of pocket, but for which he contractually expects to be reimbursed by the Tenant.

NNN leases differ from true or absolute NNN leases usually only in landlord responsibilities.  For example, a True NNN lease usually has no landlord responsibility where a general NNN lease may call for the Landlord to maintain the roof, walls and foundation…or some combination thereof.  These leases can be used for all types of commercial properties, but are more often used on single user, leased property.

Leasing Overview Information

Our article - Types of Commercial Real Estate Leases - provides an overview of the major lease types used in Commercial Leasing.

Our article - Entering Into a Commercial Lease Agreement - A Guide From a Broker - provides a more comprehensive overview/guide to Commercial Leasing.

A commercial lease is, at least in general, a detailed specification of what property you will gain access to as a tenant, along with the responsibilities of tenant and landlord in terms of the elements of the property and the expenses involved. There are many different types of leases. Each should be analyzed carefully to see that they meet your expectations. Divvying up who will pay for what costs - now and throughout the life of the lease - is a major aspect of any lease. Some (many if not most, I hope) of these costs categories are summarized in the table below:

Expense Category

Responsibility

Base Rent
Insurance
Taxes

Property Improvements


Property Repairs


Common Area

Maintenance (CAM)


* Landscaping
* Mowing
* Maintenance
* Janitorial
* Security
* Supplies
* Food Service
* Vending
* Etc.
Utilities
* Water
* Electricity
* Sewer
* HVAC
* Sanitation
* Telecomm
* Networking
* Etc.

A big part of a lease is outlining how these and other expenses are divided between landlord and tenant and how these expenses can vary over time for the tenant - which can, and probably should be limited by caps applied in the lease.

Are you looking for Warehouse, Office or other space? Do you need to renew your lease? Give us a call or click on our chat widget to reach a licensed real agent or broker that specializes in Commercial Real Estate.

Tags for this Article
(Click tag to see more articles for the tag)
Location Tags for this Article
  • All Locations

Click a Link Below to See Our Home Page for Your Metro Area

Disclaimer: At any given time, the above Metro Areas may have active affiliates, or we may be actively searching for an affiliate for any given Metro Area. Some turnover occurs as we make certain you have the best available professionals to work with. If there is an active affiliate for a metro you have selected, details will be present in the "Affiliate-Metro" (see In-Page Navigation) section above.

Need More Details?

Want more information about something on this page? Need industrial, office or warehouse space? Fill out our form here to let our Broker Affiliate Network know about your needs including help assessing an existing lease. You may also call us at (800) 814 - 4214 to begin the discussion.

Please contact us at our Info Email address or use our Contact Us form if you have questions or concerns.

As Seen On CBS NBC Fox News

Need more details?

We are here to assist. Contact us by phone, email or via our social media channels.

Large Warehouse with Dock High Docks, Links to Site Help