Understanding NNN Leases: A Guide for Tenants
Commercial leases can be complex, especially when you encounter the term NNN or "Triple Net Lease."
What is a Triple Net Lease?
In a Triple Net Lease, the tenant agrees to pay not only the base rent but also:
- Property Taxes (N)
- Insurance (N)
- Maintenance (N)
This structure lowers the base rent for the tenant but shifts the risk of operating costs.
How to Calculate Your Total Cost
To understand your total monthly obligation, you need to sum up your base rent per square foot and your estimated NNN charges per square foot.
Tip: Always ask for the historical CAM (Common Area Maintenance) charges before signing.
Using Our Calculator
We have built a specific tool to help you estimate these costs instantly. Instead of doing manual spreadsheet math, just input your square footage and quoted rates.