Question: Why Would You Want A Triple Net Lease?

Does Triple Net include utilities?

The triple net lease is one in which the tenant pays for core expenses above and beyond their base rental rate.

These expenses can include utilities, maintenance, and taxes for the office suite.

For example, some triple nets include water/sewer as part of the base rent; others do not..

Can you negotiate a triple net lease?

Absolutely not! There are many areas where a tenant can negotiate a NNN lease to make it more favorable. … If the tenant is taking on all responsibility and risk of the landlord’s overhead, then the tenant may be able to negotiate a more favorable base rental amount.

Who pays for structural repairs in a triple net lease?

In a triple net lease property, the tenant agrees to pay for all the expenses involved in operating the property. These expenses include fixed and variable expenses, as well as common area maintenance costs (CAM). Generally, the owner is responsible only for structural repairs.

How much is triple net usually?

NNN stands for net, net, net. It means that the tenant pays most of the expenses. They pay the rent fees plus property taxes, property insurance, and CAM, or common area maintenance. The NNN fees are added onto the base rental fee, which is usually calculated as a dollar-per-square-foot number like $15.

What are the three types of leases?

The three most common types of leases are gross leases, net leases, and modified gross leases.

Is a triple net lease a good idea?

The most obvious benefit of using a triple net lease for a tenant is a lower price point for the base lease. … Successful properties with low vacancy rates also make triple net lease attractive for a tenant as the taxes, insurance, and maintenance costs are divided by a greater number of fellow tenants.

What is the landlord responsible for in a triple net lease?

The landlord is responsible for all other operating expenses. A triple-net lease, often used with single-user industrial facilities, means that the tenant pays “TMI” – taxes, maintenance, and property insurance. … The landlord is responsible for the roof and the structure, and sometimes the parking lot.

What does Triple Net mean in a lease?

A triple net lease (triple-Net or NNN) is a lease agreement on a property whereby the tenant or lessee promises to pay all the expenses of the property including real estate taxes, building insurance, and maintenance.

How do you calculate triple net rent?

$8.00 base rent + $4.00 Triple Net = $12.00 Gross Rent Triple Net is comprised of the Insurance + Property Taxes + Operating Costs (sometimes referred to as CAM or common area maintenance) of a subject property.