Triple-Net

(redirected from Triple-Net Leases)

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
By creatively converting these operating assets to long-term triple-net leases, they now align well with our core investment thesis of diversification, best-in-class organic growth and minimal exposure to capital expenditures.
The properties are occupied under separate triple-net leases with approximately 14 years of term remaining and a rent escalation of 2.0% annualised.
Its strategy is to produce increasing, reliable rental revenue by expanding its portfolio and leasing its healthcare facilities to operators under long-term triple-net leases. It intends to electe to be taxed as a real estate investment trust as of 31 December 2016.
The newly originated absolute triple-net leases, which include a corporate guaranty, each have an initial term of 15 years and include annual rent increases.
The properties are in Illinois, and occupied under separate triple-net leases with about 14 years of term remaining and an annual rent escalation of 2.0%.
Properties with triple-net leases can be quite attractive to real estate investors, but they aren't as straightforward as they might seem.
These restaurants are occupied under individual triple-net leases with a weighted average remaining term of 21 years and annual rent escalators of 2.0%, the company added.
"With full occupancy and long-term, triple-net leases in place with prominent tenants at all six buildings, these properties will be very attractive to investors," said Britvan.
"Insurance companies and pension funds are lending on properties with credit tenants, long-term leases and triple-net leases," says Hyman.
The restaurants are 100% occupied under triple-net leases with 12 years of term remaining, and the transaction closed at a going-in cash cap rate of 6.5%, exclusive of transaction costs.
The properties were sold subject to long-term, triple-net leases with Kmart Corporation.
Also, the company stated that this acquisition was financed with available cash on hand and that the restaurants are 100% occupied under new triple-net leases with terms of 20 years.