NNN

NNN stands for “Triple Lease/">Net Lease.” It is a type of Lease agreement where the tenant is responsible for paying all Operating Expenses associated with the property, in addition to the rent. These expenses typically include Property Taxes, insurance, and maintenance costs. This arrangement shifts a significant portion of the financial responsibility from the landlord to the tenant.

For example, in a NNN Lease for a commercial retail SPACe, the tenant might pay a monthly rent of $2,000, along with an estimated $500 for Property Taxes, $300 for insurance, and $200 for maintenance, resulting in a total monthly payment of $3,000.

Common cases where NNN Leases are used include:

• Retail Stores: National chains often use NNN Leases to minimize their overhead costs.
• Office Buildings: Companies leasing office SPACe may prefer NNN agreements for Budgeting purposes.
• Industrial Properties: Warehouses and manufacturing SPACes frequently employ NNN Leases to allocate expenses to tenants.