Triple net lease


Also found in: Legal.

Triple net lease

A lease providing that the tenant pay for all maintenance expenses, plus utilities, taxes, and insurance. This results in lower risk for investors, who usually form a limited partnership.

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 ?
Jordan Shtulman, Principal of STREAM, commented about the sale that "the continued cap rate compression in the net lease market - particularly for high quality credit tenants under long term triple net leases - enabled the seller to achieve a profit and avoid short term capital gains taxes.
The fund will also buy UCHealth ER of Littleton, Colorado, a recently completed freestanding building fully leased to theUniversity of Colorado Health (UCHealth) on a 20 year triple net lease with seven five-year renewal options.
But there are some deals: Kunofsky completed a triple net lease in a downtown retail condo for Chipotle, where the asking rent was $250 per s/f.
But the property had a particular quality that made it an appealing investment: a triple net lease, in which the tenant pays property taxes, insurance and maintenance expenses, along with monthly rent, with 17 years remaining.
Currently, 696 West Avenue has a 17,000 s/f, 25-year triple net lease with CVS and a 5,000 s/f double net lease with ShoeMart.

Full browser ?