Triple net lease

How it is used

American English, written NNN. Common for single-tenant buildings such as chain restaurants, pharmacies and warehouses. Investors like NNN leases for their steady income; the opposite is a gross lease, where the landlord pays these costs.

Example sentences

1. The pharmacy signed a 15-year triple net lease.

2. Under a triple net lease, the tenant pays the property tax directly.

Common collocations

• NNN lease
• triple net lease property
• gross lease
• single-tenant net lease

Related terms

• leaseA legal contract in which an owner lets a tenant use a property for a fixed period in return for rent, setting out the rights and duties of both sides.
• service chargeA regular fee that owners or tenants of flats and commercial units pay toward the upkeep of shared areas and services, such as cleaning, lifts, security and insurance.
• net operating incomeA property's yearly income from rent and other sources minus its operating costs, before mortgage payments and income tax are taken off.
• retail spaceCommercial property used for selling goods or services to the public, such as shops, showrooms and units in shopping centres.

More terms: Commercial Real Estate

• commercial real estate
• cap rate
• office space
• fit-out
• anchor tenant
• break clause