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What is lease analysis?
A lease analysis uses various tools and methods to calculate and interpret financial data to determine its benefits for the lessee (renter) or the lessor (who receives payment). The income approach to value is an approach of appraisal where the value is determined by the income that is produced by the property.
What is Prosaic?
The industry standard lease analysis software program, currently used by thousands of commercial real estate professionals allowing users to analyze and compare leases from the tenant, landlord, sub-lessor's or purchaser's perspective. Protease is extremely user-friendly and intuitive, yet incredibly powerful.
What does double net mean?
A double net lease is a lease agreement in which the tenant is responsible for both property taxes and premiums for insuring the building. Unlike a single net lease, which only requires the tenant to pay property taxes, a double net lease passes more expenses along in the form of insurance payments.
What is the difference between net and triple net lease?
A net lease is a real estate lease in which a tenant pays one or more additional expenses. A triple net lease, also known as an NNN or net-net-net lease, requires the tenant to pay rent plus all three additional expenses.
What does Triple Net mean in leasing?
A triple net lease (triple-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three “nets”) on the property in addition to any normal fees that are expected under the agreement (rent, utilities, etc.).
Is triple net lease bad?
Triple Net Lease: The Good, The Bad, The Ugly. The lessee has to pay for property taxes, insurance, and maintenance. You will not typically see this type of lease in a residential setting, that is more typically structured in a Gross Lease. A triple net lease has risk for both the tenant and landlord (lessor).
What is a net lease in commercial?
A net lease is a type of commercial real estate lease in which the lessee or tenant pays for their space, but also pays the landlord for all, or some part of, certain usual costs. These usual costs are typically expenses that are associated with operating, maintaining, and using the property.
What does NNN mean in a lease?
The triple net (NNN) in a commercial real estate lease stands for Net, Net, Net which are the taxes, property insurance, and common area maintenance charges that Tenants or Lessees pay for in addition to their base rent.
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