Triple Net Leases (NNN leases) are a type of commercial lease agreement where the tenant is responsible for paying a share of the property’s operating expenses, in addition to rent. The terms of a Triple Net Lease can vary depending on several factors, such as the type of property, the length of the lease, and the negotiations between the landlord and tenant. However, here are some typical lease terms for Triple Net Leases:
- Length of Lease: The typical length of a Triple Net Lease is between 5 to 20 years.
- Rent: The rent amount is negotiated between the landlord and the tenant and is typically based on the square footage of the property.
- Operating Expenses: The tenant is responsible for paying their share of property operating expenses, such as property taxes, insurance, and maintenance costs.
- Maintenance and Repairs: The tenant is responsible for maintaining the property and making any necessary repairs.
- Renewal Options: Triple Net Leases often include renewal options, giving the tenant the right to renew the lease at the end of the term.
- Rent Increases: Rent increases may be included in the lease agreement, either through fixed increases or based on the Consumer Price Index (CPI).
It’s important to note that Triple Net Lease terms can be negotiated and customized to fit the needs of both the landlord and tenant.