What does NNN mean in commercial real estate, and why is your monthly rent higher than the rental rate advertised on a property listing? If you’re leasing a warehouse, retail space, or other commercial property, understanding triple net leases (NNN) is essential to knowing what you’ll actually pay. Unlike a traditional gross lease, a triple net lease separates your base rent from property taxes, insurance, and common area maintenance (CAM), which means your total occupancy costs can change over time.

In this episode of Commercial Real Estate Secrets, Aviva Sonenreich breaks down how triple net leases work, what NNN expenses include, and how to calculate the true cost of leasing commercial real estate.

Aviva starts by explaining the difference between gross leases and triple net leases, using familiar residential rental examples to make commercial lease structures easier to understand. She then walks through the three components of NNN expenses: property taxes, building insurance, and common area maintenance.

She also explains why commercial landlords separate rental income from operating expenses, particularly as property taxes and insurance costs continue to rise. Drawing on her experience in Colorado’s industrial real estate market, Aviva discusses how warehouse demand, e-commerce growth, and changing market conditions have influenced commercial leasing.

Most importantly, Aviva demonstrates how to calculate monthly rent plus NNN expenses using a real-world warehouse leasing example. She also explains how investors should think about rental income and net operating income (NOI) when evaluating commercial properties.

Whether you’re a business owner leasing your first warehouse, a commercial tenant reviewing a lease proposal, a landlord evaluating rental income, or an investor purchasing commercial real estate, this episode provides a practical introduction to NNN leases, commercial lease expenses, and commercial real estate rent calculations.

Key Topics Discussed

• What Is a Triple Net Lease (NNN)? Understanding what NNN means in commercial real estate and why triple net leases are commonly used for warehouses, retail buildings, and other commercial properties.
• Triple Net Lease vs. Gross Lease: How a gross lease combines rent and property expenses into one payment, while a triple net lease separates base rent from operating expenses.
• The Three Components of NNN Expenses: What property taxes, building insurance, and common area maintenance (CAM) mean for commercial tenants and landlords.
• Base Rent vs. NNN Expenses: Why commercial lease rates are often quoted separately and how to determine the total cost of occupying a property.
• Why Landlords Use Triple Net Leases: How separating operating expenses from rental income helps landlords manage unpredictable property taxes, insurance premiums, and maintenance costs.
• How Rising Property Taxes and Insurance Affect Tenants: Why NNN expenses can increase even when a tenant’s base rental rate remains unchanged.
• How E-Commerce Changed Warehouse Demand: Aviva’s perspective on how online shopping, Amazon, and the pandemic accelerated demand for industrial warehouse space.
• How to Calculate Triple Net Rent: A step-by-step example of calculating annual and monthly rent using a 1,000-square-foot warehouse with $10 per square foot in base rent and $5 per square foot in NNN expenses.
• Understanding Your Total Monthly Commercial Rent: How to combine base rent and estimated NNN charges to calculate your monthly lease payment.
• NNN Leases and Commercial Real Estate Investing: How separating rental income from operating expenses helps investors evaluate commercial properties and understand net operating income (NOI).
• What Commercial Tenants Should Review Before Signing: Why reading your lease carefully, understanding expense obligations, and asking questions before signing can help prevent unexpected costs.

Calculate Your Monthly Rent With Our Free NNN Lease Calculator

Want to know how much you’ll actually pay to lease a warehouse or commercial property? Use our free NNN Lease Calculator to estimate your total monthly rent, including base rent, property taxes, insurance, and common area maintenance (CAM). Simply enter your property’s square footage, base rental rate, and estimated NNN expenses to better understand your total leasing costs before signing a commercial lease.

About the Host

Aviva Sonenreich is the Managing Broker and Owner of the Warehouse Hotline, a Denver commercial real estate brokerage specializing exclusively in industrial properties. She leads the firm’s brokerage operations, negotiates industrial sales and leasing transactions, advises clients on acquisition and disposition strategies, and oversees the company’s marketing and business development efforts. Through Commercial Real Estate Secrets, she interviews leading investors, brokers, developers, and industry experts to provide actionable insights on commercial real estate investing, brokerage, leasing, development, and market trends.

Need Help Understanding a Commercial Lease or Finding Warehouse Space in Colorado?

Understanding triple net leases is only one part of making a smart commercial real estate decision. Whether you’re comparing warehouse rental rates, reviewing NNN expenses, negotiating lease terms, or evaluating an industrial investment property, working with an experienced commercial real estate broker can help you understand the numbers before committing.

At The Warehouse Hotline, we specialize in industrial warehouse leasing, tenant representation, landlord representation, industrial property sales, and investment acquisitions throughout Denver and Colorado.

Our team helps businesses identify warehouse and industrial spaces that meet their operational needs, compare rental rates and estimated operating expenses, and navigate commercial lease negotiations.

We also work with industrial property owners and investors to evaluate leasing strategies, market conditions, and acquisition or disposition opportunities.

Looking to lease, buy, or sell industrial real estate in Colorado?