Change verse in a Triple Net Lease Agreement - Online Editor

Change verse in Triple Net Lease Agreement. Simplify your document editing with DocHub

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What is the difference between CAM and NNN?

When seeking NNN properties for sale or a commercial retail outlet lease, it is vital to understand how CAM differs from NNN. CAM is an acronym for Common Area Maintenance, while NNN features three nets, including CAM, property tax, and insurance.

What is the difference between NNN and triple net lease?

Key Takeaways In a single net lease, the tenant pays a lower base rent in addition to property taxes. Double net leases include property taxes and insurance premiums plus a base rent. A triple net lease (NNN) includes property taxes, insurance, and maintenance costs.

Does a modified gross lease have a base year?

In this office lease, sometimes called a modified gross lease or a base year model gross lease, the tenant pays its proportionate share of increases in real estate taxes and operating expenses above those incurred in a negotiated base year.

What does $8 NNN mean?

This is usually not given when an agent gives the base rent. They will usually say its $8/sf triple net or NNNwhich means there are additional costs above and beyond the $8/sf.

What is a modified triple net lease?

A modified net lease is a negotiated middle ground between the gross lease and the triple net lease that can be used to make deals more favorable for tenants and still protect the interests of the investor by splitting some of the property expenses.

Why would someone do 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 a modified lease?

Modified gross leases are rental agreements where the tenant pays base rent at the leases inception as well as a proportional share of other costs like utilities. A gross lease is where the landlord pays for operating expenses, while a net lease means the tenant takes on the property expenses.

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.

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