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.
References in periodicals archive ?
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.
The company said it had signed a purchase contract to buy a 27,280 sq ft cardiac clinic on 5 June 2017 and that it was going to sign a new, 12-year, triple-net lease with the Lubbock Heart Hospital.
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.
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.
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.
According to the company, the triple-net leases have a blended initial cash yield of 9.
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.
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.
The properties were sold subject to long-term, triple-net leases with Kmart Corporation.
Correctional Properties Trust is dedicated to ownership of correctional facilities under long-term, triple-net leases without occupancy risk or development risk.