- Triple Net Lease
- A lease agreement that designates the lessee (the tenant) as being solely responsible for all of the costs relating to the asset being leased in addition to the rent fee applied under the lease. The structure of this type of lease requires the lessee to pay for net real estate taxes on the leased asset, net building insurance and net common area maintenance. The lessee has to pay the net amount of three types of costs, which how this term got its name.
This type of lease can also be referred to as a "net-net-net lease" or a "hell or high water lease".
For example, if a property owner leases out a building to a business using a triple net lease, the tenant will be responsible for paying the building's property taxes, building insurance and the cost of any maintenance or repairs the building may require during the term of the lease. Because the tenant is covering these costs (which would otherwise be the responsibility of the property owner), the rent charged in the triple net lease is generally lower than the rent charged in a standard lease agreement.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
triple net lease — See: net lease Category: Real Estate & Rental Property → Renters & Tenants Rights Nolo’s Plain English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009. trip … Law dictionary
triple net lease — A lease providing that the tenant pay for all maintenance expenses, plus utilities, taxes, and insurance. This results in lower risk for investors, who usually form a limited partnership. Bloomberg Financial Dictionary … Financial and business terms
absolute triple net lease — USA absolute triple net lease. Also known as a bondable lease. An extreme variation of a net lease , where the tenant is typically responsible for all, or most, of the risks related to the real property. A tenant is usually responsible for all of … Law dictionary
net lease — see lease Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. net lease … Law dictionary
net-net-net lease — triple net lease, Also known as net net net lease or NNN lease. A net lease where the tenant typically pays: • Base rent. • Real property taxes. • Building insurance. • Maintenance costs … Law dictionary
Net lease — Contents 1 Types of net leases 1.1 Single net lease 1.2 Double net lease … Wikipedia
Net Lease — A provision that requires the tenant to pay a portion or all of the taxes, fees and maintenance costs for the property in addition to rent. Net lease requirements are most commonly used with commercial real estate. There are three primary types… … Investment dictionary
net lease — Leases that require the lessee to pay expenses. For real estate leases, see triple net. For personal property leases, a net lease is a lease that requires the customer/lessee to pay for the insurance, maintenance, and all taxes, if any, levied on … Financial and business terms
Single Net Lease — A commercial real estate lease agreement in which the tenant is required to pay property taxes in addition to rent. A single net lease is a form of pass through lease in which taxes associated with the property become the responsibility of the… … Investment dictionary
lease — 1 / lēs/ n [Anglo French les, from lesser to grant by lease, from Old French laisser to let go, from Latin laxare to loosen, from laxus slack] 1 a: a contract by which an owner of property conveys exclusive possession, control, use, or enjoyment… … Law dictionary