Talk to an Advisor

What is a Triple Net Lease (NNN)?

A Triple Net Lease, also known as NNN, is a type of lease agreement commonly used in commercial real estate. In a Triple Net Lease, the tenant is responsible for paying not only the base rent but also the property taxes, insurance, and maintenance costs associated with the property.

Under this lease agreement, the tenant assumes more financial responsibility for the property, including repairs and maintenance, making it a popular choice for landlords who want to minimize their expenses. NNN leases are typically long-term agreements, with terms ranging from 10 to 20 years, and are often used for properties such as office buildings, retail stores, and industrial facilities.

For investors, Triple Net Leases can provide a reliable stream of income, as the tenant assumes the majority of the property’s operating costs, making it a low-risk investment. Additionally, properties leased under a Triple Net Lease are often eligible for 1031 exchanges, a tax-deferred exchange of like-kind properties, allowing investors to defer capital gains taxes and reinvest in other properties.

At 1031 Exchange Place, we specialize in facilitating 1031 exchanges for investors looking to maximize their returns and minimize their tax liabilities. Contact us today to learn more about Triple Net Leases and how they can benefit your investment strategy.