What is nnn for commercial leases?
An nnn commercial lease is more commonly known as a “triple net lease.” This type of lease usually stipulates that the tenant of a commercial building pays all normal operating expenses for the building.Expenses Paid by TenantWith a triple net lease, the tenant is usually responsible for paying property taxes, building insurance and maintenance and repair costs, as well as utilities.Advantages for TenantA triple net lease rate will be lower than a normal lease rate, and will usually have a much longer term. The tenant will have full control over managing expenses.Disadvantages for TenantThe tenant incurs the risk of significant increases in operating expenses. By not owning the property, the tenant does not gain from any appreciation in its value.Advantages for Property OwnerThe property owner receives a predictable long-term stream of income. She does not incur the risk of sudden increases in operating or maintenance costs, and her management effort is minimal.Disadvantages for Proper
