NNN lease means triple net lease which is common in commercial leases. "Net Lease" is a term used to signify a lease structure in which the tenant or lessee is responsible for paying a portion all of the common expenses related to real estate ownership.
In a NNN lease the tenant (person leasing the property) is liable for the taxes, insurance, and CAM (Common Area Maintenance) expenses. In a Gross Lease, the tenant pays a fixed amount of rent to the Landlord and has no other expenses to pay.
An NNN Lease is a net lease, structured as a turnkey investment property in which the tenant is responsible for paying the three major expenses associated with commercial real estate ownership. More information can be found on several different websites or within a real estate manuel.
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The average cost of a triple net lease (NNN) in the U.S. can vary widely based on factors such as location, property type, and market conditions. Generally, NNN lease rates can range from $10 to $30 per square foot annually, with prime urban areas often exceeding these averages. Additionally, tenants are responsible for property taxes, insurance, and maintenance costs, which can further impact the overall expense. For precise figures, it’s advisable to consult local real estate listings or market reports.
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NNN charges (Triple Net charges) typically refer to a lease agreement where the tenant is responsible for property taxes, insurance, and maintenance costs in addition to the base rent. CAM charges (Common Area Maintenance charges) specifically pertain to costs associated with maintaining common areas in a commercial property, such as landscaping, janitorial services, and utilities for shared spaces. While NNN encompasses a broader range of expenses, CAM is a subset focused on shared property maintenance.
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