What does 'NNN' stand for in commercial leases?

In commercial leases, 'NNN' stands for Triple Net Lease. This type of lease structure signifies that the tenant is responsible for not just the rental payments, but also for three additional costs: property taxes, insurance, and maintenance/repairs for the leased property. This arrangement places a greater financial responsibility on the tenant compared to other lease types, where the landlord may cover these costs. Understanding Triple Net Leases is crucial for both tenants and landlords, as it impacts the overall financial obligations and risk associated with leasing commercial real estate.

While 'Net Lease' refers to a lease in which a tenant pays some combination of property expenses in addition to rent, it does not fully encompass the comprehensive nature of a Triple Net Lease, which specifies the three main expenses. The phrases 'None Net Lease' and 'Net Negative Lease' do not represent recognized terms in commercial real estate, reinforcing that 'Triple Net Lease' is the accurate interpretation of 'NNN.'