Triple net lease
A commercial lease where the tenant pays base rent plus property taxes, insurance, and maintenance. Common in retail and single-tenant commercial buildings. Passes most property costs through to the tenant.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
Under a triple net lease the tenant pays taxes, insurance and maintenance on top of rent, so the owner's income is nearly all profit. Buyers pay a premium for a good NNN tenant, and the lease's remaining term is most of the value.
Part 2 of 4
A simple example
Your small retail building is leased NNN to a national tenant with eight years left. Buyers price it on the rent and the credit of the tenant, almost like a bond.
| What the buyer weighs | Why |
|---|---|
| The tenant's credit | The rent is only as good as who pays it |
| Years left on the lease | Income they can count on |
| Rent bumps in the lease | Growth without doing anything |
A triple net building sells on its lease. The building itself is almost secondary.
Part 3 of 4
What people get wrong
That NNN means the owner has no costs. Roof and structure usually stay with the owner, and the lease says which.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
One piece of your sale. Here is where all the pieces live.
In your room, this word explains itself where it appears.
Keighbor keeps your whole home sale in one place and defines every term like this one right where you meet it, in the step you're on. Free to set up, with or without an agent.