What does triple net or “NNN” reference mean in a commercial lease?

In a commercial lease the rents are often quoted as being triple net, or NNN. What this means is that in addition to the quoted rental rate, the tenant, under the lease, is responsible for their share of the operating expenses and real estate taxes associated with the property. Triple nets refer to 3 categories; Maintenance, Insurance and Taxes, thus the NNN (net-net-net) reference. Maintenance generally covers the maintenance of the property, including landscaping, common area utilities and property management. Because different landlord's might include or exclude certain expenses from their definition of NNN’s, it is important to ask the question to be better able to accurately predict operating expenses.

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Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.