what is nnn lease

A triple net lease (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, in addition to rent and utilities. Triple net leases are commonly found in commercial real estate and tend to have lower rents because the tenant assumes ongoing expenses that would otherwise be the responsibility of the property owner. Other net leases include a single net lease, in which the tenant pays property taxes, and a double net lease, which includes property taxes and property insurance. Triple net leased properties have become popular investment vehicles for investors because they provide low-risk, steady income. Investors can benefit from NNN lease properties in a variety of ways. In NNN leases, tenants take on the responsibility of major expenses, such as HVAC and roof repairs, keeping the operation cost lower for the landlord. Typically, NNN leases have lower rent per square foot rates which increases the tenant pool when a landlord is ready to lease the property.