Commercial Leasing: 3 Common Types of Rent, Part 2

Happy Friday! On to the most notorious type of rent…

2) NNN Rent:

Triple Net or NNN (Net, Net, Net) is the most common rent you’ll see in retail, industrial, and newer office product. The Triple Nets include Taxes, Insurance, and CAMs (Common Area Maintenance). And sometimes people inaccurately interchange NNN with CAMs, just to confuse the matter a bit more.

Typically, you’ll pay your proportional share which is typically determined based on square footage. That said, make sure to ask early on how the NNNs are allocated.

This is important because if you see NNN with the rent (like $25 NNN), that $25 is just your base rent and you are expected to also pay your portion of the NNNs on top of that…. including any increases over time.

If you see those three N’s, be sure to ask what the Nets are. If it’s new construction, they will only have an estimate but that’s better than missing this expense in your operations buget.

In order to operate your business well,

you need to know your financial picture.

This expense is usually in the top three in most operating budgets.

I’m glad you’re still here. See you tomorrow 😊

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