| Cost Component | Gross Lease (Landlord Pays) | Modified Gross (Landlord) | Triple Net (NNN) (Tenant Pays) |
|---|---|---|---|
| Base Rent | Landlord | Shared | Tenant |
| Property Taxes | Landlord | Shared | Tenant |
| Insurance | Landlord | Shared | Tenant |
| CAM / Maintenance | Landlord | Shared | Tenant |
| Cost Predictability | Lower for tenant | Moderate for tenant | Highest for tenant |
NNN leases shift property costs like taxes, insurance, and maintenance to the tenant.
Tenants should carefully review expense structures before signing an NNN lease.
NNN leases are common in warehouse and industrial real estate for their simplicity.
Understanding NNN costs helps businesses budget accurately and avoid surprises.
The right NNN lease can support long-term operational stability and cost control.
A triple net lease (NNN) is a commercial real estate lease structure where the tenant agrees to pay additional costs beyond the base rent. These –three nets— refer to:
Property Taxes
Insurance
Common Area Maintenance (CAM)
NNN leases typically require rent to pay base rent plus property taxes, insurance, and common area maintenance
In an NNN lease, the landlord collects a single monthly rent payment from $15 that her tenate from base rent, the tenant reimburses the landlord for property taxes, insurance, and maintenance expenses—either directly or through regular reconciliations.
NNN leases typically require rent to pay base rent plus property taxes, insurance, and common area maintenance
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