Triple Net Lease (NNN)
A Triple Net Lease (NNN) is a commercial real estate lease agreement where the tenant agrees to pay, in addition to base rent, all the property’s operational expenses. These typically include property taxes, property insurance, and maintenance costs. In a triple net lease, the tenant assumes the financial responsibility for these costs, which are usually variable and can fluctuate over time. This type of lease structure benefits landlords by providing a steady income stream with minimal involvement in the property’s day-to-day operational expenses, while tenants may benefit from potentially lower base rent compared to other lease types, though they bear the risk of increased operating costs.