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How to Save Triple Net Lease Agreement in DOC

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In this video, viewers will learn the fundamentals of commercial leases, including common lease structures, essential lease clauses, and typical delivery conditions. While it doesn’t cover every detail, it aims to provide sufficient knowledge to navigate commercial real estate. The tutorial highlights various lease structures, focusing on the most common type, the triple net lease. This lease requires tenants to pay base rent plus three additional expenses: property taxes, building insurance, and common area maintenance. In a triple net lease, tenants are responsible for all property-related expenses, while the landlord's obligations are minimized.

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How do you abbreviate triple net lease?

What Is a Triple Net Lease (NNN)? A triple net lease (triple-net or NNN) is a lease agreement on a property whereby the tenant or lessee promises to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance.

What is the downside of a triple net lease?

Drawbacks to a Triple Net Lease There is an inherent danger in using a triple net lease with regards to the unknown. Unexpected and substantial damage to the property could docHubly increase your monthly maintenance and repair costs.

Is a triple net lease an operating lease?

It is also referred to as NNN lease (net net net), emphasizing the payment of three operating expenses. Therefore, the amount of rent is kept lower than gross lease agreements.Triple Net Vs. Gross Lease. BasisTriple Net LeaseGross LeaseRent AmountLowHigh4 more rows

Is a net lease the same as a triple net lease?

A single net lease requires the tenant to pay only the property taxes in addition to rent. With a double net lease, the tenant pays rent plus the property taxes as well as insurance premiums. A triple net lease, also known as a net-net-net lease, requires the tenant to pay rent plus all three additional expenses.

What is not included in a triple net lease?

How Triple Net Leases Work. A triple net lease works by a commercial property owner leasing a building or space to a tenant. However, instead of including all taxes, insurance, and common area maintenance (CAM) in the rent amount, the tenant pays an equal portion based on square footage.

How do I know if my lease is triple net?

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, in addition to the base rent. A triple net lease includes property taxes, insurance, and maintenance costs, in addition to the base rent.

What does a triple net lease look like?

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.

How do you find the triple net?

Calculating a Triple Net Lease Triple net leases are calculated by adding the yearly taxes on the property and the insurance for the space together and dividing that amount by the building total rental square footage.

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Save Triple Net Lease Agreement in DOC