What is a double NN lease?
A double net lease is a rental agreement whereby the tenant agrees to cover the costs of two of the three primary property expenses: taxes, utilities, or insurance premiums. Also known as a net-net (NN) lease, these are most commonly found among commercial tenants.
What does NN mean in commercial real estate?
Double net leases
Double net leases, which are also called net-net leases or “NN” leases, are especially popular in commercial real estate. In a lease like this, the tenant pays property taxes and insurance premiums in addition to the rent.
What is nn vs NNN lease?
There are a few ways to consider the difference between triple-net (NNN) and double-net (NN) leases, and why a tenant might choose one over the other. When any one of these items is covered by the landlord, the roof for example, it becomes a NN lease. In a NNN lease, the tenant has control over all of the expenses.
What does NNN mean in leasing?
triple net lease
A triple net lease (triple-net or NNN) is a lease agreement on a property whereby the tenant or lessee promises to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance. These expenses are in addition to the cost of rent and utilities.
What is the most common commercial lease?
Triple Net Lease
A Triple Net Lease (NNN Lease) is the most common type of lease in commercial buildings. In a NNN lease, the rent does not include operating expenses. Operating expenses include utilities, maintenance, property taxes, insurance and property management.
What is an index lease?
An index lease, also known as a variable lease, is a name for a type of clause in a lease agreement that’s often used in commercial real estate. Since commercial lease agreements are often much longer than residential leases, it’s common to negotiate periodic rental increases from the start.
How long is an estate for years?
An estate for years is a type of lease, with the tenant leasing real property for a specific amount of time. There is a beginning date and an ending date for the lease, and the lease usually lasts for many years. The lease specifies the amount of rent the tenant must pay the landlord.
Is a triple net lease bad?
Drawbacks to a Triple Net Lease There is an inherent danger in using a triple net lease with regards to the unknown. Unexpected and substantial damage to the property could significantly increase your monthly maintenance and repair costs.
What is the best type of commercial lease?
Triple Net Lease Arguably the favorite among commercial landlords, the triple net lease, or “NNN” lease makes the tenant responsible for the majority of costs, including the base rent, property taxes, insurance, utilities and maintenance.
What are the 4 types of commercial lease?
The Four Types Of Commercial Leases
- Gross Lease or “Full-Service Lease”
- Modified Gross Lease.
- Net Lease.
- Percentage Lease.