Triple Net Lease "NNN Properties"

NNN Properties, also known as a Triple Net Lease or Net-Net-Net Properties are becoming more widespread than ever before. These properties normally utilize the Triple Net Lease for their lease agreements between landlord and tenant. They are used extensively in commercial real estate properties, and work as a 'give and receive' between landlords and tenants. Triple Net leases are often long term leases from five to fifteen years or more in length. The specific terms and liabilities of each NNN property and Triple Net Lease differ greatly, so be sure to read through your lease thoroughly prior to execution.

Burger King Triple Net Lease, NNN Property sold for $1,000,000.00, approx $338 per square foot.

Triple net NNN properties are properties under lease agreements between the tenant and the landlord in so the tenant agrees to pay for property taxes, property insurance, any repairs, or remodeling to the property in exchange for a lower rent. This type of lease is popular with tenants who desire to lease a newer or updated facility, but can't afford the monthly expense of a traditional lease. NNN Property leases are great for new businesses with low startup budgets because they enable them to lease a larger space with less money. The tenant is able to 'lock in' a lower monthly lease rate, and is only required additional out of pocket expenses for increases in property taxes, property insurance, repairs or remodeling of the NNN property. With a well maintained property, repairs or remodels often require little to no additional funding.

Even though monthly lease payments are lower, many landlords desire NNN properties and NNN leases. This is because they are able to transfer some or all of the financial responsibilities of property maintenance and repairs over to the tenant. When landlords allow a tenant to have a lower monthly payment, the tenant is required to maintain the property and make basic repairs. Often times, the specific terms of an NNN lease allow for cost of living rent increases, or increases at a predefined rate. This allows a landlord to have a long term lease agreement with a tenant, without losing future potential profits. NNN properties are also generally very secure properties for a landlord to own, and allow the landlord to reinvest more finances into other properties or businesses. With credit-worthy tenants, the NNN properties themselves become a great investment for landlords and many times are easier to sell than traditional properties.

As with any commercial real estate property lease, the NNN property lease has its pros and cons. While reviewing the terms of your Triple net lease, take note of any additional responsibilities of tenant versus landlord. This will assist you in deciding if an NNN property lease is right for you!