Why Is It Called a Net Lease?

Real estate leases come in various forms, each with its own set of terms and conditions. One type of lease commonly used in commercial real estate is the net lease.
Why Do Companies Do Net Leases?

A net lease has benefits for both tenants and landlords. These leases come in different forms and are signified by their number of “N”s, such as NNN, which means triple net lease.
What are the Major Components of a Net Lease?

In commercial real estate landlords sometimes choose to use a net lease, which requires tenants to pay expenses beyond their rent to contribute to the property's operational costs. The components of a net lease can include base rent, property taxes, insurance, and maintenance costs.
How are Triple Net (NNN) Charges Calculated?

Commercial property leases can take numerous forms, from gross to absolute net. Many of the particulars are standard within each type, but there are variations. Therefore, always carefully review a lease's terms to ensure you aren't surprised by what you are responsible for paying.
What Is An Example of a Net Lease?

Net leases generally are for single-tenant properties. They are often associated with office buildings, warehouses, and retail spaces. Retail properties probably utilize net leases more than any other category. These include fast food restaurants, convenience stores, gas stations, and big box stores.
Can You Negotiate a Triple Net Lease?

Triple net leases may be appealing to some real estate investors because the tenant agrees to do most of the heavy lifting under this type of lease structure.