What does NNN mean in commercial real estate?
Wonder no more. In this post, we’ll demystify what the heck NNN means next to all those Office, Warehouse and Retail Space listings you’re seeing online. NNN stands for Triple Net rent. In this type of commercial real estate rent, you pay the amount listed and you also have pay additional costs (usually Operating Expenses) on top of that.
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).
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.
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 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.
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.
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).
Do you have to pay triple net for NNN?
The short answer is, yes. In addition to paying your Triple Net Expenses you will be responsible for your own expenses to run your business out of the space. These expenses are electricity, water, gas, other utilities, internet service and janitorial service. Because NNN rents are not very transparent,…
Where does NNN come from in the body?
NNN can be produced in the acidic environment of the stomach in users of oral nicotine replacement therapies, due to the combination of dietary/endogenous nitrates, and nornicotine (either present as a minor metabolite of nicotine, or as an impurity in the product).
What does NNN stand for in medical terms?
NNN is a derivative of nicotine that is produced in the Curing of tobacco, in the burning of tobacco (such as with cigarettes), and in the acidic conditions of the stomach.
Is there a safe level of NNN in humans?
There is no known “safe” levels of NNN ingestion in humans due to its carcinogenic activity. However, in mice, the median lethal dose (LD 50) is 1g/kg. In cigarette smoke, NNN has been found in levels between 2.2-6.6 parts per million (ppm).
Where can I find NNN properties for sale?
LoopNet also attracts the largest community of commercial real estate professionals looking for NNN Properties with more than 7 million members comprised of brokers, corporate executives, service providers, and more than 3 million buyers, tenants and other principals. Find NNN Properties for sale at LoopNet.com.