Triple Net Lease (NNN)
NNN lease: tenant pays base rent + property taxes + insurance + maintenance. Landlord: net income, no operating risk. vs. gross (landlord pays all), modified gross (shared), and double net (taxes + insurance only). Benefits to landlord: predictable, low management. Benefits to tenant: lower base rent, control. Risks to tenant: escalating costs, maintenance obligations, capital expenditures, and insurance. Due diligence: review historical expenses, get estimates, and negotiate caps.
Structure
- Base rent + 3 nets
- Taxes, insurance, maintenance
- Landlord: net income
vs. Other Leases
- Gross: landlord pays all
- Modified: shared expenses
- NNN: tenant pays all
Tenant Risks
- Escalating costs
- Capital expenditures
- Negotiate caps
Related Terms
- Lease — Rental agreement
Barnes Walker Commercial RE
Barnes Walker’s attorneys negotiate NNN leases in Florida. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 83, Part II
The Florida Residential Landlord and Tenant Act governs lease agreements, security deposits, maintenance obligations, and the eviction process.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC