What does NNN (Net Net Net) or Triple net mean in a lease?

Triple net means:

That in addition to the lease price per square foot rate, the tenant pays ALL operating expenses on the property. These include: Property Taxes, Hazard Insurance, maintenance and utilities. This fee is usually presented in an additional annual cost per square foot.

Example:

1,500 sf office space

Rate: $18.00 annually=(1,500 x $18.00= $27,000 annual lease divided by 12 months= $2,250.00 monthly)
NNN $5.00 annually=(1,500 x $5.00= $7,500 annual triple net fees divided by 12 months=$$625.00)

So the true monthly cost of the 1,500 space is $2,875.00 or $23.00 per square foot.

Make sense? It sure does if you own the building!

Confused...Make sure you hire a Commercial Real Estate Agent to represent you in the lease transaction!