Triple Net Commercial Lease Agreement

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What is triple net commercial lease agreement?

A triple net commercial lease agreement, also known as an NNN lease, is a type of lease agreement commonly used for commercial properties. In this type of lease, the tenant is responsible for paying not only the base rent, but also for additional costs such as property taxes, insurance, and maintenance expenses. This differs from a standard lease agreement where the landlord typically covers these costs. The triple net commercial lease agreement shifts these financial responsibilities to the tenant, making them more involved in the overall costs and management of the property.

What are the types of triple net commercial lease agreement?

There are three main types of triple net commercial lease agreements:

Single net lease: In this type of lease, the tenant is responsible for paying property taxes.

Double net lease: In addition to property taxes, the tenant is also responsible for paying insurance premiums.

Triple net lease: The tenant is responsible for paying property taxes, insurance premiums, and maintenance expenses.

How to complete triple net commercial lease agreement

Completing a triple net commercial lease agreement involves several important steps:

Negotiate the terms and conditions of the lease with the landlord.

Review the lease agreement thoroughly, paying attention to the rent amount, lease term, and provisions regarding maintenance, insurance, and taxes.

Make any necessary modifications or additions to the lease agreement.

Sign the lease agreement, ensuring that all parties involved have signed.

Keep a copy of the signed lease agreement for your records.

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