Net triple lease 2025

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The document is a comprehensive lease agreement for a commercial building, outlining the terms and conditions between the lessor and lessee. It details the responsibilities of both parties regarding rent payments, maintenance, alterations, insurance, taxes, and other obligations associated with the leased premises. The lease is structured as a triple net lease, meaning the lessee is responsible for all operating expenses including property taxes, insurance, and maintenance costs. Additionally, it includes provisions for renewal options, default conditions, arbitration for disputes, and legal compliance.

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What is the triple net lease?

In a triple net lease, the tenant is responsible for paying all of the necessary expenses related to the property, such as taxes, insurance, and maintenance. In a ground lease, the tenant is responsible for paying taxes and insurance, but the property owner usually pays for maintenance and utilities.

What is a triple net lease?

Lease Rate: $20.00 /SF NNN (Estimated NNN = $3.25/SF), meaning the base rental rate is $20.00 per square foot per year and the property expenses, which include property taxes and insurance, are estimated to be $3.25 per square foot per year, though they can fluctuate from year to year.

What is the downside of a triple net lease?

In a triple net lease (NNN lease), landlords transfer the financial responsibility for property taxes, insurance premiums, and maintenance expenses to tenants, who pay these costs in addition to the base rent.

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