In a triple net lease (or NNN lease), the Tenant is responsible for their pro-rated share of the “triple net costs”: taxes, insurance and common area maintenance (CAM). In addition, the Tenant is also responsible for utilities and janitorial. Why then, you may be asking, would any potential Tenants consider a triple net lease agreement as their ideal setting?
Agreeing to a NNN lease does have several advantages for the Tenant. One of the primary advantages to an NNN lease is transparency – all of the building’s operating costs are available for the Tenant’s review upfront. There are no surprises, mysteries or guesswork here. A Tenant will be given a great rundown of what to anticipate before ever putting a pen to paper, making it very tactile and also incredibly beneficial for business budgeting purposes.
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