Triple Net Lease (NNN)
In a triple net lease, the tenant typically pays base rent plus its allocated share of three major cost categories: real estate taxes, insurance, and operating expenses (often including CAM), as specified by the lease. Exact inclusions, exclusions, audit rights, and reconciliation mechanics are defined contractually and drive the effective cost of occupancy.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Lease Negotiation
- Property types
- Commercial Leasing (Retail/Industrial; some Office)
Related terms
Commercial Leasing Terms
- Additional Rent
- Assignment and Subletting Clause
- Base Rent
- Base Year
- Commencement Date
- Common Area Maintenance (CAM)
- Effective Rent
- Full-Service (Gross) Lease
- Gross-Up
- Modified Gross Lease
General information, not legal, tax or financial advice.