Commercial Lease Form

Specifically, I am interested in hearing more about this form of commercial leases and what it means for the tenant.

To quote a commercial investor RE / educator:

"One of the types of property the more popular in commercial real estate are" triple net ", also known as" NNN "deals. They are usually single-tenant properties leased to retail tenants with ratings high credit on "net-net-net" terms (hence the acronym NNN), which means that the tenant is responsible for property taxes, insurance and all maintenance. "*

The key is the owner is not responsible for any costs of operation. The tenant wants to control and be financially responsible for these items. As they owned the property and they had full control. Like in a broad sense to lease land not in this case, the landlord's own structure.

The above quote is from Ray Alcorn. Reference below. Ray began his business career in the family business he runs with his brothers, now that his father is no longer active. He is quoted in the New York Times and has published two books (think of how the manuals).

I have included links to the business forum, he moderates the site CREOnline.

I met the guy a few times. I have the manual (real money spent on it). If you want to know there are a number of free articles, plus an active discussion group.

Note the information is U.S. centric. trade agreements are very focused country if math and some ideas of funding across boarders.

Although there is no official definition (read the lease itself). In my personal experience with the intention of a triple net lease means the tenant is responsible to pay for everything. Maintenance, taxes and insurance - on top of the rental amount.

Compare that to a standard apartment / residential lease where you usually pay (for 1 year) of a fixed amount and that the owner is responsible for everything else.

In all honesty, the landlord must cover all costs regardless. However, many commercial leases are for longer periods of time and the property is customized for a specific type of activity. In addition, if the company has customers coming in this facility, they are very concerned about the appearance and want to keep it.

Anyway, a kind of long answer, but the point is it more important that the lease is in his verse that we talk about triple net lease.

Hope that helps.

Sincerely,

Joe ...