This article provides an in-depth overview of triple net (NNN) commercial leases, highlighting their benefits and drawbacks for owners and tenants. It offers practical tips for finding NNN property listings and understanding lease responsibilities, making it a valuable resource for real estate investors and professionals interested in NNN investments.

Guide to Triple Net (NNN) Commercial Leasing: Pros, Cons, and Property Listings

The triple net (NNN) lease is increasingly favored in commercial real estate transactions. While popular, many investors want to understand its advantages and potential drawbacks. This article covers what an NNN lease entails, discusses its benefits and disadvantages, and shows how to find NNN property listings for investment.

What is an NNN lease?

An NNN lease is a rental agreement where tenants are responsible for all ongoing property costs, including taxes, insurance, and maintenance, in addition to rent. The term “triple net” indicates all three costs are covered by the tenant.

For comparison, a single net lease makes tenants responsible for one expense; a double net lease covers two; and a triple net lease includes all three, shifting most operational costs away from the landlord.

**Pros and Cons of NNN Leases**

Advantages for property owners: NNN agreements offer reliable income with fewer management duties, as tenants handle the majority of operating expenses, reducing unpredictable costs.

Advantages for tenants: Tenants gain greater control over property modifications and often benefit from lower base rents, since they cover operational costs directly.

**Potential drawbacks:** Tenants assume higher expenses, including taxes, insurance, and upkeep, which can become substantial. They are also responsible for repairs caused by weather or damage, regardless of business performance.

**How to find NNN properties for sale:**

Finding listings for NNN properties can be tricky, as not all real estate platforms offer specialized filters. However, some commercial listing sites allow targeted searches for NNN assets, with options to filter by property type, tenant, or specific lease terms.

Reonomy

LoopNet

CREXi

Ten-X

Marcus & Millichap