What’s a Triple Net Lease?

January 10 2023

So commercial leases come in various forms. Some are modified gross leases.

So that means an owner takes on ownership and responsibilities of a portion of the building maintenance and/or the operational cost of the property.

You as the tenant, you pay your rent and a proportionate share of real estate taxes or you can have what we call a triple net lease. These are mostly found in retail properties storefronts where you have your restaurants, your clothing stores, and all these other things.

These triple net leases mean most of these owners take on all of the responsibility of the properties, whether that is maintenance, whether that is real estate taxes and/or any cost that may come up in your lease term.

So if you are a tenant, and you’re going into a relationship or a lease with an owner, please be sure to talk to your broker about what is the type of lease the owners offer – is it modified gross, is it a gross lease, is it a percentage lease or a triple net lease?