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What are the risks of a NNN lease?

A triple net lease (NNN) is an arrangement in which the tenant agrees to cover both the rent and any ongoing expenses on a property. This type of lease can benefit both landlords and tenants, thought the latter group is at risk should tax and insurance costs rise.

What does a net-net lease mean?

Despite their simplicity, NNN leases come with concentrated risk: Your income hinges entirely on one tenant. If they default, close the location, or go bankrupt, your revenue could vanish overnight, leaving you responsible for property taxes, insurance, and loan payments until you can secure a new tenant.

What is the average commercial lease rate?

In a net lease, the tenant pays a portion or all of the taxes, insurance fees, and maintenance costs for a property in addition to rent. Net leases are commonly used in the commercial real estate sector.

What does single tenant net lease mean?

In 2025, the national average for office space sits at about $33.41 per square foot annually, but this figure varies dramatically depending on where youre looking, what type of property you need, and how your lease is structured.

What is a net-net lease in commercial?

A single net lease is a form of pass-through lease in which taxes associated with the property become the responsibility of the tenant instead of the landlord. Under a single net lease, the landlord is still responsible for the other operating expenses involved with running the property.

air standard industrial commercial single tenant lease net

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