Commercial Triple Net
Triple net lease (NNN) is normally a commercial lease where the lessee pays rent and utilities as well as three other types of property expenses: insurance, maintenance, and taxes. Triple net leases are very popular for investors because they have less financial and managerial responsibilities over the property, and they have less risk because the lessee covers much of any cost fluctuations, incentivizing the lessee to keep up the property. Further, the lessees benefit from triple net leases because their rent typically is less, and they generally are able to renovate or alter the property more than in a regular lease. On the downside, a lessee would have to cover unforeseen maintenance costs and tax increases unless the lessee and lenders agree to a cap on the amount the lessee would be responsible for.
Resources - About
- Commercial Real Estate Leases: The 4 Types Explained
- Triple Net Lease (NNN) Meaning, Uses, and Benefits for Investors | Investopedia
- Triple Net Lease: A Complete Guide to NNN in Commercial Real Estate
- Triple net lease | Cornell
Resources - Investing
- The risks and benefits of NNN property
- Investing in Triple Net (NNN) Properties: EVERYTHING You Need to Know
- How to Invest in Triple Net (NNN) Properties
- The Best States for NNN Investing