Triple net lease leased properties offers the advantage for the landlord of little if any day to day management responsibilities. The tenants or tenants pay most if not all of the expenses. Included are pro rata share of property taxes, insurance, common area maintenance and contributions to a capital expenses reserve for major capital expenses such as a new roof or repaving the parking lot.

In the instance of a single tenant, triple net lease or NNN lease as it often called, An absolute net lease is similar except that the tenant pays all expense including property taxes. They generally direct pay.  They operate as if it they owned the property.

The net lease, NNN, triple net retail lease is the predominant form of lease for single tenant and multitenant retail. There are very few exceptions. This includes all of your major high quality retailers such as CVS, Walgreens, Walmart, Best Buy, Kohl’s, Macy’s, Home Depot, Lowes, 7 Eleven, Circle K, Kroger’s, Giant Eagle, etc.

As always, have a good real estate attorney, licensed in the state where the property is located, review the lease. As it’s said, the devil is in the details.

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