Triple net lease

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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.


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.
9 million and entered into a 10-year triple net lease with a third party operator that operated the property under a lease with the seller.
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.
Getty estimates that the acquisition and triple net lease transaction will be accretive to its annual earnings in the amount of approximately $0.
The Lease is a triple net lease and provides for the payment of base rent of approximately $530,000 in its first year, $705,000 in each of years two through five, $750,000 in each of years six through ten and $795,000 in each of years eleven through fifteen.
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.
Getty also announced today that it has entered into an agreement to triple net lease all 18 of the properties to Yellow Goose Markets, a leading convenience store operator in the region, effective upon the closing of the acquisition.
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.
Each property is subject to a triple net lease in which Beckman Coulter is obligated to pay rental payments with no setoff, abatement or reduction.
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.
Upon closing of the acquisition, CapLease entered into a 20-year triple net lease with Tiffany.
CapLease has also agreed to enter into a 20-year triple net lease with Tiffany upon closing of the acquisition.

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