A triple net lease, also referred to as a NNN lease or net lease, is the most desired type of tenant lease for an investment property.
Triple net NNN leases can be single tenant or multiple tenant retail, restaurant, industrial or office properties.
Triple net lease leased properties offers the benefit 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.
Single tenant nnn, net leased properties can be absolute net leases, which mean that the tenants direct pay or reimburse all expenses.
These is the most desired of investment properties and are very popular for 1031 exchange (upleg) replacement properties. These are the best for an out of area owner/landlord.
These will generally be your net leased retail Walmart, CVS, Walgreen, 7 Eleven, Circle K, Home Depot, Target, etc.