What is the definition of a triple net (nnn) lease in commercial real estate?

Triple Net Lease Definition

A point of confusion for some is how a triple net lease works in commercial real estate. The triple net lease definition (sometimes called a nnn lease) as defined in my Barron’s Real Estate Dictionary is a lease in which the tenant pays all operating expenses for the property. Examples of property expenses include taxes, utilities, insurance, repairs, cleaning and maintenance, and licensing fees. However, landlords are responsible for their own debt service and income taxes.

Triple net lease agreements will often stipulate which party (tenant or landlord) is is to pay which expenses.

2 Responses to “What is the definition of a triple net (nnn) lease in commercial real estate?”

  1. Hi, I just came across your blog this morning and I have to tell you that I found it very informative and well written !! I will continue to follow your blog in the future waiting for more great articles !! Kudos to you

    May 30, 2011 at 2:30 PM Reply

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