Triple net, commonly abbreviated as NNN, is a commercial real estate lease structure that places the responsibility of paying for property taxes, building insurance, and maintenance costs onto the tenant, in addition to the base rent. In essence, it shifts these expenses from the landlord to the tenant, hence the term “triple net,” referring to the three main expenses covered.
Property taxes are taxes levied by local governments on the value of real estate properties and are typically assessed annually. Under a triple net lease, the tenant is responsible for paying property taxes directly to the relevant tax authorities.
Building insurance covers the cost of insuring the commercial property against damages such as fire, theft, or natural disasters. In an NNN lease, the tenant is required to obtain and maintain insurance coverage for the property, with the landlord named as an additional insured party.
Maintenance costs encompass expenses related to the upkeep and repair of the property, including but not limited to landscaping, utilities, HVAC system maintenance, and structural repairs. In a triple net lease arrangement, the tenant is responsible for covering these costs, ensuring that the property remains in good condition throughout the lease term.
Triple net leases are commonly used in commercial real estate, particularly for properties such as retail centers, office buildings, and industrial spaces. They offer benefits for both landlords and tenants: landlords benefit from a predictable income stream with reduced operational expenses, while tenants have more control over their operating costs and can customize the property to suit their specific needs.
However, NNN leases also come with certain risks for tenants, as they may be liable for unexpected increases in property taxes or maintenance expenses. Additionally, tenants must carefully review the terms of the lease agreement to ensure that they fully understand their obligations and potential liabilities before entering into a triple net lease arrangement.
At Executive Office Link, there is no Triple Net to worry about. Our rent is all-inclusive and includes fully furnished office suites with 24/7 secure access, 24/7 HVAC, all utilities, internet service, conference room time, janitorial, on-site management, landscaping and snow removal.
Having all-inclusive rent with no hidden fees means you know what to expect every month.
Give us a call for more information, or to schedule a personal tour to see how we can help you with your office needs!