This lease type provides long-term stability for the landlord and greater control for the tenant. A commercial inspection report will help the lessee predict and prioritize preventative maintenance and disruptions or inconveniences caused by inevitable building maintenance and repairs. In a net lease, the lessee typically assumes some or all costs of maintaining the. A triple-net lease, also known as simply a triple-net or NNN, is a type of lease agreement on a property, most often commercial real estate. Section 199A was added to the Internal Revenue Code under the Tax Cuts and Jobs Act of 2017 to provide taxpayers. Don’t be surprised to see a landlord forced into. Desirable commercial site in the heart of Old Town’s thrivin. The Basics: Triple-net lease clauses define every major and minor lease detail, starting with the definition of your NNN lease and basics like property address, amount of security deposit and rent, and length of lease (10-25 years). This Lease is what is commonly called an “Absolute Triple Net Lease,” it being understood that Landlord shall receive the Base Rent set forth in Section 4. New stores operate with a 15-year absolute NNN lease. A triple-net lease inspection, also referred to as a net-net-net or NNN inspection, is a type of lease inspection that is performed for a triple-net lease real estate transaction. A triple net lease indicates the tenant has full responsibility for all taxes, building insurance, maintenance, repair and replacement of any and all building systems, and maintenance and repair for the building itself. Whether you are new to net-lease real estate or a seasoned investor, besides not having to deal with CAM, a triple-net lease property is a wise consideration with the following advantages: Credit-worthy, long-term tenant; usually a national corporation or large QSR franchisee. )A typical triple-net lease in the senior living space often involves a pooling of multiple properties by a single property owner, which are then leased to an independent operator, with set annual. A subset of triple net. Petitioner Exhibit 6 – Primerica lease, Petitioner Exhibit 7 – Data sheet and location map of South Park office building, Petitioner Exhibit 8 – Data sheet and location map of Vantage Centre,. Savvy investors in a Northeast-based private equity (PE) group who understand the triple net (NNN) market well and own over 50 Dollar Generals, see the value in working with Phil Bundren, Buyer’s Advisor at Westwood Net Lease Advisors. What Is a Triple-Net Lease Inspection? A triple-net lease inspection is a sort of lease inspection that is carried out in connection with a triple-net lease real estate deal. Having made such inspection of the Premises, the Building, Lot 1 or the Project as it deemed prudent and appropriate (including, without limitation, testing for the presence of mold), Tenant hereby accepts the Premises in their condition existing. Triple Net Lease (NNN Lease) Triple net leases are popular commercial real estate leases. A triple net lease (sometimes called a “net-net-net” or “NNN” lease) designates the tenant as solely responsible for net real estate taxes, net building insurance, and net common area maintenance relating to the leased asset (in addition to the rental fee). You might also be asked to contribute a proportionate share of the building-wide air and heating costs. Net Lease REITs rent properties with long-term leases (10-25 years) to high credit-quality tenants, and these predictable REITs are referred to as “Net lease” as they generally use a triple. Total annual base rent: $36,000 ($3,000. Review the title reports and property lease. With a tripe net lease agreement, tenants pay most of the expenses associated with the leased property, including property taxes, repair,. Triple net leases are most common in longer leases. Provides financial statements. Member Logout; My Extended Profile; Groups;. Updated September 25, 2023. 16555 FM 423 Frisco, TX 75033. When paying a triple net lease, The tenant usually pays with one check (or one transaction). Calculating NNNs. 05 Inspection of Premises: 17 : ARTICLE 9: FIXTURES, PERSONAL PROPERTY. 9. 33 psf. Shopping Center Lease: Dipping Into Sales. 22 Jan 2021 • 3 min read. This reduces the landlord’s risks. If there’s not a change in the proposed regulations, there may be no Sec. Property taxes on the building are $1,000 per month, insurance premiums are $500 per month, and. Should any of the three expenses (insurance, property. Each “N” in the lease name represents a cost the tenant agrees to pay. Insurance: $6,000 per year. The tenant essentially assumes obligations that typically fall to the landlord and pays a lower rent in return. Issuer manager and sponsor CIM Real Estate Finance Operating Partnership L. A triple-net lease is a short-term lease. Consistent, Passive Income. Property Taxes: $8,000 annually. A triple-net lease inspection, also referred to as triple-NET or NNN lease inspection, is a type of inspection that is performed for a triple-net lease real estate transaction. It should be performed for both the lessor and lessee and can take pre-lease, during the lease, or post-lease. A modified gross lease is more tenant-friendly and allows the landlord and tenant to negotiate which expenses relating to the leased premises should be included. Triple net leases transfer practically all costs and expenses of the building to the tenant. In such a lease, the tenant or lessee is responsible for all costs. The single-level facility comprises 42 single bedrooms and ensuites, with kitchens, tables, and lounge areas in each wing. This is especially true if the buyer lives outside the area where the. This commercial lease calculator uses a simple formula to calculate the annual rent: rent = area × rate. They are especially useful for Triple-Net Lease negotiations. Triple net leases are also generally long-term and potentially bonded, such that the tenant can’t get out of the lease easily, and the landlord can’t crank up the cost of rent over time beyond some stated maximum. About Triple-Net Leases A triple-net lease, also referred to than a net-net-net lease and NNN charter, a a lease contracts where the lease (a single tenant) is responsible for paying…Explore frequently asked questions and learn the ins and outs of triple net leases with our comprehensive FAQ page. For instance, while both involve a landlord renting space to a tenant in exchange for money, a residential lease cannot be used for business purposes. The three nets referred to in the title are insurance, property taxes, and CAM (common area maintenance) fees. As of this publication date, more than 90% of the U. The idea is the Landlord will not have any out-of-pocket costs relating to the leasing of the property. Triple net leases are full of insurance time bombs waiting to go off. In a triple-net lease, tenants are responsible for property taxes, insurance premiums, and maintenance costs. Triple Net Leases – Triple net leases involve part of the costs of property taxes, CAM costs, and property insurance expenses. Consistent, Passive Income. Regardless of your. 1/6 . A triple net lease guaranteed by Blockbuster in 2005 won’t do you. A Triple-Net Lease Inspection is a type of commercial inspection performed on a property that where a Triple-Net Lease (or net-net-net / NNN) is involved. Welcome to the WBTreece Consultants CCPIA 201 Commercial Inspector Confidence Course. All amendments to this Lease must be in writing and signed by all parties. Ground leases, among other forms of so-called triple net leases, serve an important function in real estate ownership. A standard Triple Net Lease requires the tenant to pay base rent plus the cost of covering Common Area Maintenance (CAM), real estate taxes and insurance. k. Commercial leases are binding legal contracts between a landlord and a business tenant. The law normally provides that if the tenant is in violation of the lease, the landlord must give the tenant a 3-day notice to correct the violation to avoid eviction. A triple-net lease, also referred to the a net-net-net lease or NNN leased, is ampere lease agreement where of lessee (a single tenant). These are the most common and popular net leases for industrial and retail properties because the expenses are based on a pro-rata share, or the amount of space a tenant takes up in their building. Commercial Kitchen Inspection: Type I Exhaust Hood. Basics. Voracious appetite for net-lease product has propped up values, but if inflation continues to push the 10-Year Treasury up, cap rates will follow. On or before the Lease Termination Date, in consideration of Landlord’s agreement to terminate the Lease early as provided herein, Tenant shall pay to Landlord as Additional Rent a sum equal to Five Million Two Hundred Eighty-Six Thousand and 00/100 Dollars ($5,286,000. This SUMMARY OF BASIC LEASE INFORMATION AND DEFINITIONS ("Summary") is hereby incorporated into and made a part of the attached Single-Tenant Triple Net Lease dated as of february 10, 2020, which pertains to the Premises described in Section 1. Let's say an investor owns a commercial building he leases to a clothing retailer. What the property owner remains liable for are structural issues, and of course, the mortgage. Triple Net Lease (sometimes called net-net-net or NNN): The tenant pays all of the operating expenses, taxes, and insurance. Your lease could include that you are responsible for such things as the heating and cooling systems, the. Triple-net leases require the tenant to pay taxes, insurance, and maintenance costs, leaving almost. In such an agreement, the landlord is not liable for property taxes, insurance premiums and maintenance costs associated with the property. The configuration of this type of lease involves the lessee to pay for net real estate taxes on the leased asset, net building insurance. A CASp report indicates whether the premises meets accessibility. NACBI members specialize in property condition assessments for net or triple-net leases. Maintenance costs include the cost to maintain the building's upkeep, including common areas such as lobbies,. The first is a single net lease, in which the tenant is responsible only for paying property taxes plus base rent. The term length of an NNN. 0 views, 0 likes, 0 loves, 0 comments, 0 shares, Facebook Watch Videos from Mike L. - One property in the portfolio accounting for about 7. When leasing a property for commercial use, there are a variety of lease types from which to choose. Getting a Triple-Net Lease Inspection will help you keep yourself up-to date on the condition of the property and a safeguard for maintaining acceptable prop. 9. A triple net lease is a rental or leasing contract where the tenant, or lessee, agrees to pay for all the expenses of the property. A triple net lease is also known as “gross rent plus all operating costs. B-3-1, Baltimore. The comparable has. While landlords and tenants may consider the triple net as the most advantageous of the three leases, it can backfire in an expensive way. This net lease (also referred to as NNN or sometimes written as triple-N) is a structure where the tenant agrees to pay the real estate taxes, insurance and fees incurred from the maintenance of the building. A triple net lease is a commercial lease agreement where the tenant agrees to pay all three net expenses related to the property. The tenant may have to pay taxes on the amount they owe each year. Rent: State the rent amount, initial due date and subsequent due dates. population has been placed under stay-at-home orders with restrictions. A triple-net lease deal (a. First, a brief primer. Historically, triple net refers to leases where a tenant rents an entire freestanding commercial building and pays for all property expenses. But if you think delegating the costs of maintenance, property. Ensure that Katrina knows that not. The trade-off for the landlord is monitoring the property to ensure the tenant is following the terms. for the following: property taxes; insurance; and property maintenance. Typical terms for a triple net lease are 10 years or. Triple Net Lease Example. 1 views, 0 likes, 0 loves, 0 comments, 0 shares, Facebook Watch Videos from Aric Z. Property manager and special servicer CREI Advisors LLC. Similar to a bank, net lease REITs essentially capture the “spread” between the acquisition. These costs are usually estimated for the year and incorporated into the rent on a monthly basis. We are ready to answer your. Triple Net Lease. As a rule, the discussion about the maintenance measures required by law and regulations (inspection, maintenance, repair, possibly even. A triple net lease, often known as a net-net-net lease, compels the tenant to cover all three additional costs in addition to the rent. All. The primary. The due diligence process allows an investor to complete four important steps before the sale is final: Examine all features of the loan. This includes rent, taxes, insurance, and any expenses for the common area. 3 below. These expenses are usually paid directly by the tenant or reimbursed to the property owner. For landlords, triple net leases certainly reduce overhead costs — but there is a risk of reduced long-term earnings. 50 per square foot. Triple Net Leases as Active Trades or Businesses. It should be performed for both the lessor and lessee and can be done pre-lease, during the lease, or post-lease. 7. NNN means “net, net, net” and describes lease agreements that are net of property taxes, insurance, and maintenance expenses for the landlord. Upon completion of that discovery, the parties filed supplemental briefs on. A reputable property manager should and usually does a drive by on a periodic. Absolute Lease. The implied cap rate is 5. In most triple-net (NNN) commercial leases, these expenses include all utilities and property services. . triple net basis to Advance Auto over a long-term lease. Similarly, if your tenant decides they will not renew their lease, they should provide a 30-day or 60-day notice of non-renewal, also known as a notice to vacate. But it is real and it is a long runway of. A triple-net lease, also referred to as a net-net-net lease and NNN lease, is a lease agreement where the lessee (a single tenant) is responsible for paying the lessor (landlord) on a net-net-net basis for the following: real estate taxes; insurance; and property maintenance. Triple Net Lease (sometimes called net-net-net or NNN): The tenant pays all of the operating expenses, taxes, and insurance. If you have a property manager collecting the rent and handling any issues with your tenant. These expenses include property taxes, insurance. The implied cap rate is 5. These additional expenses make up the three “nets” and are. In this guide, we will discuss Starbucks’ market lease rates and how they select their sites. It is known for being quite flexible when it comes to apportioning maintenance and repair tasks between the landlord and the lessee. ”. Triple-net lease: Triple-net leases, also known as NNN, are the Holy Grail of commercial leases. Triple net lease quotes. The landlord would still be responsible for maintaining the building and paying the CAM charges. Triple-net leases require tenants to reimburse the site manager for costs including taxes, insurance, operating expenses, and electricity. These include real estate used by the taxpayer as a residence under section 280A; real estate rented under a triple net lease; real estate rented to a trade or business conducted by a taxpayer on an RPE which is commonly controlled under section 1. While very similar to residential leases, there are some very important distinctions between the two. 65% cap rates $263,337 NOI. 7. Similar to the owner’s responsibilities,. ) and capital improvement (e. In other words, tenants are required to pay all. A triple lease, which is also known as an NNN lease, is an agreement between a property owner and a tenant where the tenant (in addition to a monthly rental fee of the building or space). They also include other lease terms like direct depositing rent and the day it’s. threaten the seller's agent with a lawsuit if the problem isn't quickly fixed. 7 billion of net-lease investment accounted for 18. 199A-4(b)(1)(i) and rental real estate where any portion of the property is treated as a specified. At the end of the due diligence period, a buyer can either complete the sale and close the. In a triple net lease, the tenant is responsible for some or all of these three. Be sure to check your laws since states. A triple net lease is a real estate agreement in which the tenant pays all expenses associated with the property, such as taxes, insurance, and maintenance costs. At the parties' request, the Court held the motion in abeyance to allow them to engage in discovery related to the motion. Variations of the gross lease and net lease exist. A net lease is a real estate lease in which a tenant pays one or more additional expenses. A triple-net lease inspection, also referred to as a net-net-net or NNN inspection, is a type of lease inspection that is performed for a triple-net lease real. This means that the tenant is responsible other responsible for operating expenses such as repairs and maintenance, in addition to paying rent. “Even if a triple net lease is a true absolute net lease, it may not cover all expenses associated with a. 8. In this context, some real estate operating expenses include parking, inspection fees, broker’s fees, landscaping, security services, real estate commissions, and. Net Lease Example. Triple net lease quotes. 00) on or before the. A higher rating means there is less chance of the store closing or the company going bankrupt. 4. NNNs are one of several types of so-called net leases, the other two common options being single and double-net leases. 1-800-USA-1031. There are downsides to a triple net lease for both the property owner and the tenant. This means that the rent, albeit it lower than with other types of lease, is a relatively secure source of income. 5% every year or 10% every five years. 25%. A taxpayer may make elections for multiple trades or businesses on a single. Monthly NNN = $1,000. In a net lease the tenant takes responsibility of the base rent plus one or more of the property’s expenses: taxes, insurance, and / or maintenance. Commercial Doors, Window, and Interior Inspection at InterNACHI’s Pennsylvania House of Horrors ®. Professional and Qualified NACBI Members Providing Commercial Property Inspection and/or Infrared Thermal Imaging Inspection Services are just a few clicks away!A triple net lease (NNN) is among the most common type of lease that will be found for both retail space and freestanding commercial buildings. An RPTB election must be made for each of the taxpayer's eligible trades or businesses. J. 1 2 f8k050118ex10-1_zonedproper. Maintenance and repair costs can be unpredictable, but in this example, Tenant A estimates they will need to pay $1,000 a month for maintenance, and Tenant B expects a cost of $2,000 monthly. It's a type of commercial property where tenants agree to cover the cost of. where: area – Total area of the rented space, usually in m² or ft²; rate – Total rental rate – rent per m² or ft² determined by your landlord; and. Consideration Payable to Landlord for Lease Termination. ”. Triple Net Fees. The triple-net lease has two siblings, which are rather similar: the single-net and double-net lease. The Old Town Retail Property at 1529 N Wells St, Chicago, IL 60610 is currently available. As far as passive income goes, NNN investments are among the top performing since the leases are often guaranteed by tenants with strong credit that tend to stay in place for years and years. 33/SQFT per month). That was well above the five-year average of 11. ”. The “unknown” factor of unexpected or emergency expenses is passed on to the tenant. A triple net (or NNN) lease is a lease agreement in which the tenant pays for all of the operating costs associated with a property, in addition to the fee applied for rent. Known as an NNN, the lease details the rights and responsibilities of the tenant and the landlord. In a triple-net lease, tenants are responsible for property taxes, insurance premiums, and maintenance costs. A triple net lease also called an NNN lease, is one in which the tenant handles the basic rent, monthly property taxes, insurance, and maintenance. A triple net lease, or NNN, is one of the most common types of leases. Click the card to flip 👆. Triple net leases place the greatest financial responsibility on the tenant of any net lease structure. Essentially, water damage to the property caused by the tenant’s actions will be the tenant’s responsibility to fix. A triple net lease, also known as an NNN Lease, is a lease in which the tenant agrees to pay their pro-rata share of all expenses associated with property maintenance, taxes, and insurance, in addition to a predetermined base rental rate. Double net lease A double net lease is very rare to see in New York City. This is a Triple Net Lease, meaning that the Lessee agrees to cover all costs associated with the upkeep of the aforementioned property. The tenant or lessee promises to pay all the expenses of the property. If the tenant is financially stable throughout the lease, it is an assured investment for several years. Professional representation in lease negotiations can serve both parties. A triple-net lease, also referred to as a net-net-net lease and NNN lease, is a lease agreement where the lessee (a single tenant) is responsible for paying the lessor (landlord) on a net-net-net basis for the following: real. A triple-net lease can be very attractive for landlords who want to minimize their risk and hassle. Request a Proposal!. May 3, 2018 1 min read. Note. Property taxes in many areas around the country are continuing to rise. Assessing these costs requires due diligence. double net lease, and. 2MC. Advantages of a Triple Net Lease. Within the Hoya Capital Net Lease Index, we track the sixteen net lease REITs, which account for roughly $100 billion in market value. Under this triple net lease, the tenant (ABC Retail Chain) is responsible for paying the following expenses in addition to the base rent: Property taxes: $12,000 per year. Commercial Inspection Procedure and ComSOP. Property maintenance in a triple net lease. Lease terms may be between 10 and 15 years with a predetermined escalating rent. The reduction in rent must be great enough to offset the costs of maintenance and taxes. Get a comprehensive commercial property inspection from TXCREI, the trusted choice for businesses in Texas. Refurbishes property when vacant. Landlords in triple net leases can take small comfort from the fact that failure to meet the safe harbor does not preclude a rental real estate enterprise from being a section 162 trade or business, as such a determination is based on all facts and circumstances. In Q3, $11. In a triple net lease, the rental rate that is agreed upon by both parties (tenant and landlord) essentially belongs to the landlord. We also offer a Pre-Lease PCR for clients looking to lease buildings of all sizes. Site selection is a critical component to ensure the NNN lease will make money. " At its core, a triple net lease is a type of commercial lease structure that contains a provision saying that the lessee. It’s more common for this type of inspection to be. d. Trustee Citibank N. Builds a relationship with the tenant. That type of stability is excellent to have as a landlord growing your business. Commercial Triple Net Lease 2010 Page 3 of 9 limit coverage of not less than $ for injury to or $ death of persons and $ for property damage. Small-scale residential rental properties. Commercial leases will often provide that if the tenant is in violation of the lease, a notice of more than 3 days must be given. Groetzinger, which held that to be engaged in a trade or business the following two requirements must be met: 1. 8. For example, a commercial property might be listed as “$32 per foot, triple net” or “$32/sq ft/year,. The three nets referred to in the title are insurance, property taxes, and CAM (common area maintenance) fees. $100,000 / 12,000 sf = $8. Take my real estate example, where there may be multiple regarded partnerships that have one triple net lease property in each entity. These increases result in improved Net Operating Income over time. For example, a commercial property might be listed as “$32 per foot, triple net” or “$32/sq ft/year, NNN. The Triple-Net (NNN) Commercial Lease Agreement is the most commonly used rental contract by businesses looking to occupy an isolated building or retail space. Professional and Qualified NACBI Members Providing Commercial Property Inspection and/or Infrared Thermal Imaging Inspection Services are just a few clicks away!Triple Net originally filed its motion for summary judgment on August 26, 2020, well before the end of the discovery deadline. Understandably, a high-net-worth individual aiming to divert $2 million from the stock market may be drawn to the promise of a largely tax-sheltered, 5. Section 4. In a single net lease, the tenant is only responsible for paying property taxes in addition to the rent. 4. Exhibit 10. Sep 8th 2023. This means you can count on passive income throughout the lease. As a commercial property owner or investor, a top priority for you is to ensure that your building is in the best possible condition. 94 per land square foot. 5400. The objective of this course is to provide commercial building owners and inspectors with the courage, tools, and training to build his own business and tackle any commercial building inspection. A triple-net lease, also referred to as a net-net-net lease and NNN lease, is a lease agreement where the lessee (a single tenant) is responsible for paying the lessor (landlord) on a net-net-net basis for the following: real estate taxes; insurance; and property maintenance. A net lease is the most common commercial lease. EX-10. NNN or triple net leases can offer property owners long-term tenant stability, which is why they are popular for retail outlets and commercial centers. 1031 Investments; 1031 Properties; 1031 Services. The proposed regulations provided that, solely for the purposes of determining whether a trade or business qualified as a QOZ Business, the ownership and operation – including leasing – of real property qualifies as an active conduct of a trade or business. Refurbishes property when vacant. Performs inspections. Most often, triple net leases are long-term (10. Triple net lease A triple net lease is the most landlord friendly of. Depending on the type of structure you have, the need for inspection could be a result of a number of things including the age of the property, existing/expected problems, or simply a periodic structural check. Tenant’s DutiesA "triple net" lease is a lease in which a commercial tenant is responsible for "maintaining the premises and for paying all utilities, taxes and other charges associated with the property. And so, although Treasury has. 5%. Triple net lease. View OM. This includes utilities, taxes, rent, and repairs. A triple net (NNN) lease is defined as a lease structure where the tenant is responsible for paying all operating expenses associated with a property. The Lease Renewal Letter If you want your tenant to renew their lease, reach out to them about two months before their current lease ends. Are you the Landlord of a commercial property under a triple net lease? Or a current/future tenent of one? NextDay Inspect® is a CCPIA certified inspector an. This type of lease can be attractive to both landlords and tenants. What is a Triple-Net Lease? Triple-Net leases are a type of rental agreement where the tenant is responsible for paying property taxes, insurance, and all maintenance fees associated with the rental property. Health. We inspect all types of commercial properties, including office buildings, retail stores, warehouses, and more. Operating expenses (op/ex) are the costs. Exhibit 10. But if you think delegating the costs of maintenance, property. In a triple-net lease, the tenant is responsible for paying an. A triple net lease, commonly abbreviated as NNN, is a leasing agreement where the tenant is required to pay for the three main expenses of a property on top of the base rent. Additionally, if the tenant does not take measures to minimize the. rent – Sum of what you have to pay annually or monthly. A triple-net lease inspection, also referred to as a net-net-net or NNN inspection, is a type of lease inspection that is performed for a triple-net lease real estate transaction. Triple Net Leases, on the other hand, require the tenant to pay additional expenses associated with the property, including property taxes, insurance, maintenance costs, and the base rent. To determine which type of lease is right for your needs, let’s take a minute to discuss what a triple-net lease. Introduction As Triple Net Leases continue to gain popularity over the years in more ways than one, especially when it comes to placing…SIG has experience and knowledge in all forms of triple net properties for sale, along with the expertise to save you a great deal of hassle and hurdles in the process. This means that you can collect a reliable income for 10, 15, or even 20 years, depending on the agreement. 5 or 6 percent return on a triple-net. Under the terms of a gross modified lease, a commercial tenant pays some, but. It can apply to either commercial or residential property. An office space listing with a triple net lease will usually quote the base rent. Since most of the maintenance costs are going to remain the same, even though only a portion of. Earning caps, which are commonly found in many triple net lease agreements, prevent a landlord from increasing rent prices beyond a set point. 7 billion) since 2010. Triple net leases are typically long-term leases that establish a monthly rent with specific rent increase increments. 67 million) and have a net operating income (NOI) of $366,000 and a lease of $414 per square foot. Bond Leases The bond lease requires the lessee to perform all obligations related to the leased premises. Real estate investing is one of the best ways to create wealth and consistent income along with providing excellent tax advantages, financial leverage and it provides a hedge against. An absolute NNN lease is a long-term lease. With this lease structure, landlords are off the hook for covering expenses that often result from property ownership. Triple Net Leases – Triple net leases involve part of the costs of property taxes, CAM costs, and property insurance expenses. Leaves Triple Net Leases Out in the Cold Many real estate investors hoping for clarity on whether they will be eligible for the tax break for pass-through entities under the Tax Cuts and Jobs Act (TCJA) will be disappointed that guidance from the Internal Revenue Service (IRS) will not help much for projects leased on a triple-net basis. Any other attempted amendment will be void. 2. (There are also several ownership variants for triple net NNN lease investments that you should be understood before reviewing available listings. ft. A triple net (NNN) lease requires the lessee (tenant) to pay three required expenditures related to the rented real estate: maintenance, insurance, and taxes. A couple of houses or a duplex might be a good. The property owner covers structural damage and mortgage payments. In a single net lease, the tenant pays a lower base rent in addition to property taxes. htm LICENSED MEDICAL MARIJUANA FACILITY TRIPLE NET (NNN) LEASE AGREEMENT DATED MAY 1, 2018 BY AND BETWEEN CHINO VALLEY PROPERTIES, LLC AND BROKEN ARROW HERBAL CENTER, INC. EX-10. Triple net lease. A NNN lease agreement outlines tax responsibilities. Here are some of the advantages of a NNN lease. Successful properties with low vacancy rates also make triple net lease attractive for a tenant as the taxes, insurance, and maintenance costs are divided by a greater. 26. Triple nets are typically calculated by projecting the total amount of expenses for the coming year, dividing it by the total rentable square footage of the building, and then dividing that by 12.