Bold highlight in a Triple Net Lease Agreement - Online Editor

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What is the opposite of a triple net lease?

A triple net lease is the opposite of a gross lease. The lessee agrees to pay rent, utilities, and all of the propertys operating expenses. This includes maintenance costs such as common area maintenance (CAM), insurance, and property taxes (represented by NNN).

Why would someone agree to a triple net lease?

A triple-net lease can be a good option for landlords and tenants. While landlords can hand off paying various property expenses, enjoy a stable source of income, and focus on their own business, tenants, on the other hand, may receive a lower monthly rent and maintain control of the property.

What is not included in a triple net lease?

Even with a true absolute triple net lease, there are some things that tenants are typically not expected to pay for, including: The landlords legal costs. The landlords accounting costs. Fines or fees assessed to the landlord or building that are not the fault of any particular tenants.

What is the downside of a triple net lease?

Triple net leases, though popular in commercial real estate, arent without a few drawbacks. The main concern for a tenant is the higher monthly costs as opposed to those in double or single net lease structures.

What is the advantage of a triple net lease?

For tenants, triple net leases generally provide more freedom to make alterations and customize space without having to make the substantial capital investment of purchasing a property outright. Tenants may also be able to leverage the added financial responsibility to negotiate lower rents.

What is a AAA tenant?

What is a triple-A tenant? AAA Tenant: A candidate with a full-time job, consistent income, credit score over 700 and two professional references or previous landlords that will vouch for their character and cleanliness.

What is the difference between triple net lease and absolute net lease?

A conventional triple net lease (NNN lease) has a tenant being responsible for property taxes, insurance premiums and property maintenance costs. In contrast, the absolute net lease includes major building repairs.

What is the triple net lease?

Triple net lease (NNN) is normally a commercial lease where the lessee pays rent and utilities as well as three other types of property expenses: insurance, maintenance, and taxes.

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Bold highlight in the Triple Net Lease Agreement