A Triple Net Lease is a type of Net Lease that requires the tenant to pay most of the operating expenses that are associated with the property. The expenses included in a triple Net Lease are typically added onto rent and utility payments, including things like building insurance, maintenance fees, and property taxes. A Triple Net Lease can be very beneficial to both the tenant and landlord. Here’s what you need to know.
At the most basic level, triple Net leases include insurance premiums, property taxes, and maintenance fees. For more complex leases, other fees may be included as well. Because all of these expenses are included, the base rent is typically lower than other leases.
It is commonly thought that a triple Net Lease includes all property expenses, but this is not always the case. Often times, triple Net leases do not include any accounting costs, legal costs, or other minor costs. Each Lease is different, however, so be sure to read through the entire lease to ensure that there are no hidden expenses you weren’t aware of.
Landlords choose triple Net leases because it guarantees a steady flow of income and doesn’t require a lot of management. Tenants are responsible for handling any issues with the property, so landlords can take a step back. Tenants benefit from triple Net Leases as well, with lower prices and more financing options.
It’s important to also know and consider the risks that can come with a specific type of commercial lease. One thing to consider is that most triple Net leases are for single tenant properties, so you are 100% financially responsible for the entire property. A triple Net Lease can also result in the tenant being responsible for re-leasing the property.
At Newspace Commercial, we fully represent the tenant looking to find the perfect commercial space. Born from AJ Properties, an Anne Arundel County based commercial real estate firm, Newspace Commercial is designed to focus solely on Tenant Representation services, ensuring that you find your perfect business space, avoid mistakes, and negotiate the best deal.
For more information, visit our website www.newspacecommercial.com. To contact us, give us a call at (410)-218-1372!