Understanding the difference between triple net (NNN) and gross leases is essential for commercial real estate success.
Triple Net Lease:
- Tenant pays base rent plus property taxes, insurance, and maintenance.
- Popular for single-tenant retail and industrial properties.
- Predictable income for landlords, but more responsibility on tenants.
Gross Lease:
- Tenant pays one all-inclusive rent amount.
- Landlord covers operating expenses like taxes and utilities.
- Common in office leases.
Knowing which lease works best depends on the asset type, market, and negotiation goals. Jennings Real Estate can help tailor the right structure for your next deal.