What does it mean to pay NNN per sqft?
This means that on top of the stated per-square-foot fee for renting the space, you will also be responsible for things like: For example, you may have a base rental fee of $26 NNN per sqft/year. In this case, your rent is $26, plus the NNN payments. These extras are also quoted per square foot and specified elsewhere in the contract.
What do you need to know about NNN charges?
The next item you see included in the NNN charges is property insurance. As the name suggests, this covers damage to the property itself. This is one charge that you should look carefully into so you understand what is or is not covered. Just because you are paying for property insurance does not mean that your insurance needs are fully covered.
How much does NNN insurance cost per month?
On a 1000 square foot property, that comes out to a total of $600 per year or $50 a month. If you are renting a large space or an entire facility, the type and cost of insurance is definitely something that can be negotiated.
Do you have to break NNN expenses down?
While NNN expenses are sometimes quoted in full rather than broken down by portion, it is worth digging deep into the contract to find out the details for yourself. The amount of your total NNN price that is made up of taxes is going to differ based on many factors.
What does NNN stand for in real estate?
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.
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.
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).