Triple net lease (NNN)

A triple net lease (sometimes abbreviated as NNN) is a type of lease where the tenant not only pays the rent, but also agrees to pay all the costs of the property, including taxes, insurance and maintenance. This type of agreement is common in commercial real estate and is considered advantageous to investors because it reduces the number of variables and uncertainties associated with the property's operating expenses.

Other terms from the category

Net yield

The net return removes operating costs from the gross return equation and therefore provides a cleaner picture of the actual profit generate...

Capitalisation rate

The Cap Rate is an indicator that expresses the relationship between the annual net operating income (NOI) of a property and its purchase pr...

The internal rate of return (IRR)

The internal rate of return (IRR) is the discount rate at which the net present value of all future cash flows from an investment (i.e. inco...

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