In the commercial real estate sector, a commercial net lease form makes the tenant pay in addition to the rent that has to be paid along with the other property expenses that have to be generally paid by the property owner or the landlord. These expenses include property taxes, the payment of the insurance, maintenance, and repair and other utilities and operations and are frequently used in commercial real estate. There is also another name for such kind of expenses, which is known as “three nets” or triple net lease.
What is a Triple Net (NNN) Commercial Lease?
A commercial property agreement through which the tenant is made responsible for rent as well as all the utilities along with other associated costs related to the rent is known as a triple net commercial lease. The property owners or managers or the landlords use this lease agreement more often as it can be an attractive arrangement for them making them collect revenue on the property without having to worry about the upkeep and administration. These kinds of agreements are for a non-residential property that is made between the landlords and a business tenant. A triple net commercial lease agreement is different than a standard commercial lease because, in the former agreement, the renter is responsible for the normal rent and utilities but also the other added costs related to the property.
Types of Net Leases
Single Net Leases
A single net lease can be referred to as a net lease or N lease and are not that common in the rental sector. This lease includes that the landlord transfers a minimal amount of risk to the tenant which means that any other expense such as insurance, repairs, and maintenance, etc. are the landlord’s responsibility. The maintenance and other repairs that may be required during the lease is also the responsibility of the landlord. A single net lease allows the tenant to pay a slightly lower rent compared to the standard lease as the added cost of the property taxes.
Double Net Leases
The type of net lease that is especially popular in commercial real estate is a double net lease or NN lease where the tenant pays property taxes and the cost of insurance premiums in addition to the rent. The tenant must pay the additional expenses and the base rent for space is generally low. The landlord, on the other hand, is responsible for the payment of the maintenance costs who have to pay them directly. The additional payments have to be passed on to the landlords so that they can pay them to the municipality and insurance company. The tenant’s lease includes these payments, but still, the landlord’s name is on the bills making him responsible.
Triple Net Leases
A triple net lease, also known as NNN lease relieved the landlord of most of the risks that are involved in a net lease. The costs of structural maintenance and any kind of repairs are all paid by the tenant in addition to the rent along with the added taxes, insurance, and other payments. The base rent is typically low in a triple net lease as the additional expenses are passed on to the tenant. Landlords may make use of a bondable net lease that is a kind of triple net lease which cannot be terminated before its expiration date in case a tenant plans on breaking their lease.
2+ Triple Net (NNN) Commercial Lease Agreement Samples in PDF | DOC
1. Triple Net Commercial Lease Agreement
For taking a commercial space on rent, an agreement is required for the needs that have to be carefully executed and this agreement is known as a commercial lease agreement form. The given document provided here consists of a commercial lease agreement that is usually drafted by the landlord and must contain several conditions like a detailed explanation of the leased premises, information regarding tenant improvement, certain allowances, the commencement of the term of lease and statistics regarding the option to renew the lease and other basic important details like the rent, security deposits and so on. It is an extended agreement that covers almost all the important features regarding renting a property.
2. Sample Triple Net Commercial Lease Agreement
Most often, a triple net lease is a long term lease that may last for some years and generally include adjustments for rent increases. This template consists of a sample triple net commercial lease agreement that can be used as a reference for you in case you are planning to rent a commercial place. It consists of a professional level triple net commercial lease agreement that is meant for multiple tenants. One must know before entering into such an agreement that the landlord may increase the tenant’s operational expenses to make payments for insurance policies, or else, the tenants may also be responsible for any kind of damage done to the property in case it is not covered by the insurance. The given template can be quite handy for you as it contains every detailed description of the terms involved in an agreement.
3. Commercial Triple Net Lease Agreement in DOC
In case you are not at all aware of the terms and conditions that are included in a triple net lease agreement, this document will surely be the best example for you to take some guidance. It involves the basic set of terms and provisions in an orderly manner and the format is easy to understand and completely convenient for a beginner to understand. It is direct as well as editable so you can even make use of it for any future purposes regarding rental lease agreement forms and customize it accordingly.
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