What does NNN stand for in real estate?
A NNN lease or triple net lease is one of the most common lease structures in Commercial Real Estate. A NNN lease contains a provision for the tenant to pay, in addition to the tenant’s base rent, certain costs associated with operating the property. Each “N” or “Net” stands for Property Taxes, Insurance and Operating Expenses.
What does it mean to pay nnn for office space?
For example: say the Office Space listing you’re interested in says the rent is $24.00 NNN per sqft/year. The $24.00 number is your Base Rent. That’s the minimum amount that you pay in rent just to lease the space. In addition to Base Rent, you will pay have to pay additional money to cover the Operating Expenses (or NNN or Triple Net Expenses).
How much does NNN cost per square foot?
Using our example above, say the commercial real estate agent tells you the NNN charges/expenses are $6.00 per square foot, per year. Then to find out your total monthly rent, you will have to add the $24.00 base rent and add $6.00, then divide by 12 months, then multiply by the total square feet you will be leasing.
What kind of expenses are included in NNN?
The NNN expenses usually include your proportionate share of the exterior maintenance of the building, property insurance and property taxes. They are usually quoted on a per square foot basis. Are There Any Other Expenses to Consider? The short answer is, yes.
NNN stands for net, net net which are the property’s operating expenses (taxes, insurance, & common area maintenance fees) that the owner passes through to tenants. Keep in mind that the NNN are in ADDITION to the base rent that you negotiate.
What does triple net NNN mean in a commercial real estate?
If you are leasing 4,000 sf your yearly and monthly rent would be $97,600 and $8,133.33. Keep in mind that NNN are variable and can change from year to year. Taxes are the main reason for increases or decreases however the other components could possibly change also.
Where are the NNN properties in Long Island?
Own It Vista is an eye-catching, new 50,000-SF office warehouse ideal for many business types, including construction, breweries, RD, lab space,… 1714 Newbridge Road is a prime opportunity for investors looking to grow their portfolio within the North Bellmore suburb of Long Island. 7-Eleven…
Are there any costs covered by a NNN lease?
For example, it’s rare for an NNN lease to cover the accounting costs charged by the landlords CPA or legal costs charged by the landlord’s attorneys when drafting or reviewing documents. While these costs are usually small relative to the purchase price of a property, they are nonetheless not typically covered in a standard “NNN lease”.
What should you know about the triple net ( NNN ) lease?
With that said, in order to fully understand the NNN lease you must first understand the spectrum of commercial real estate leases. All commercial real estate leases fall somewhere along a spectrum with absolute net leases on one end and absolute gross leases on the other end.
Can a NNN be a turnkey commercial property?
While a true absolute NNN lease with a strong tenant can be thought of as a turnkey commercial property from the landlord or investor’s perspective, even an absolute net lease has some expenses that won’t be covered by the tenant (s).