Triple-Net

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Triple-Net

A lease in which the tenant is responsible for costs in addition to rent. The tenant is responsible for net property taxes, net insurance, and net maintenance for the duration of the lease, which is the origin of the name. Because the tenant is responsible for costs that the lessor would otherwise pay, rent on a triple-net lease is usually lower than on other leases.
References in periodicals archive ?
Long-term triple-net leases with built-in rental growth: The triple-net lease portfolio has a weighted average lease term of 15 years and includes annual inflation-based rent escalation.
Triple-net lease with annual rent escalation and a 15-year weighted average term
Properties with triple-net leases can be quite attractive to real estate investors, but they aren't as straightforward as they might seem.
Triple-net leases are used for a variety of properties, such as office, industrial and retail.
CPA(R):16 - Global expects to purchase properties under long-term, triple-net leases, which can offer tenants control of the properties lasting up to 40 years including renewal options.
These triple-net leases have a blended initial cash yield of 9.
The properties were sold subject to long-term, triple-net leases with Kmart Corporation.
A triple-net lease allows the tenant/user long-term operating control of the property as well as the responsibility for payment of taxes, capital improvements, maintenance and repairs.
Fitch's `BBB-` senior unsecured rating continues to reflect positively on NNN's well diversified asset base (375 properties in 40 states), moderate tenant concentration with the five largest representing 31% of base rents, a history of stable investment performance under long-term triple-net leases, and a manageable use of debt leverage at 44% of undepreciated book capital as of Nov.
According to Edward Clark, President of Golden Corral Realty Corporation, the shareholders voted to approve the acquisiton of 15 fast-food restaurant properties subject to triple-net leases in return for shares of Golden Corral Realty Corporation common stock valued at $10 per share.
Fitch's `BBB' senior unsecured rating continues to reflect positively on CNL's well diversified asset base (pro forma 381 properties in 40 states), moderate tenant concentration with the five largest representing 31% of base rents (pro forma), history of stable investment performance under long-term triple-net leases, and manageable use of debt leverage at 46% of undepreciated book capital as of March 31, 2001.
Correctional Properties Trust is dedicated to ownership of correctional facilities under long-term, triple-net leases without occupancy risk or development risk.