Triple Net Services

Some Basic Information about Commercial Real Estate NNN

For some of us who do not know what exactly commercial real estate NNN is, the term may sound complicated but in actuality, it is not. First of all, NNN describes a triple net lease wherein an individual leases a commercial property and the person may be obliged to consume some part or even the whole extent of the property expenses usually covered by the owner of the property. It all depends on the terms stated on the lease and this condition could vary. Generally, in most cases, the tenant pays a standard rental fee but also could be responsible to pay for the other expenses like maintenance, utilities, repairs, taxes, and insurance.


In the first place, you might ask why the owner of the property would like to set up a commercial real estate triple n.  The main reason is that this term of triple net lease is a great opportunity for property owners to pay off their mortgages and at the same time earn some little cash in the process. An example is if you have a mini-mall and you have tenants who would lease some parts of the location. These tenants can opt for triple net lease options, and, depending on the size of their chosen location, they will pay some part of the expenses on top of their rentals. This is going to be advantageous for the property owner since the owner will get to pay his property expenses, pay the mortgages per month, and earn some extra bucks too along the way.


Actually, when you as the owner use a commercial real estate NNN at, you are making an equity investment.  The owner would spend the most of the commercial cost and use the triple net lease to pay off the financing, get some positive cash flow, and when the property is fully paid, the owner has the option to sell the property for some profits after building the equity. If you as the owner has good paying tenants, then you have a win-win situation in this arrangement.


Do you know the reason why the triple net lease is referred to as NNN? Well, it is because, in this condition, you as the owner will only get positive net, net and net of your investment. It is a fact that net can be sometimes negative or positive. In this triple net lease condition, the property owner will only get positive cash flow after all expenses are paid. In other words, the commercial real estate NNN is a way for the owner to pass on some of the burden associated with a commercial overhead to the tenants, and secure the owner's mortgage in the process, and come out with a positive net of the whole deal. Check out this website at for more details about investments.