CRE Tool Hub

NNN Lease Estimator

Uncover the hidden costs of a Triple Net Lease. Calculate your true rent.

Lease Details

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The "Three Nets" (NNN)

Enter these amounts as annual costs per square foot ($/SF/Year). Check the listing or lease draft.

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Additional Costs

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Gas, Electric, Water (Paid directly).

Lease Analysis

Base Rent NNN Charges
Base Monthly Rent $3,333
NNN Monthly Charges $1,333

Tax + Ins + CAM

Effective Monthly Rent

$4,666

Paid to Landlord

Total Occupancy Cost

Rent + NNN + Utilities

$5,166

Effective Rate ($/SF/Yr)

$28.00

Is this rent affordable?

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💡 Pro Tip: Your "Effective Rate" is $28.00/SF. Always negotiate lease terms based on the listing price ($20/SF), but budget your business plan based on the effective price.

Understanding NNN Leases

Triple Net (NNN) leases are the industry standard for retail and many office properties. In a NNN lease, the tenant pays a lower base rent but is responsible for the property's three major operating expenses: Real Estate Taxes, Building Insurance, and Common Area Maintenance (CAM).

What am I paying for?

  • Base Rent: The fixed amount paid to the landlord for the use of the space.
  • Taxes (N): The tenant's pro-rata share of the building's property taxes.
  • Insurance (N): The tenant's share of the building's property insurance policy.
  • CAM (N): Common Area Maintenance including parking lot lighting, snow removal, landscaping, janitorial services for shared hallways, and property management fees.

Frequently Asked Questions

Are NNN charges fixed?
No. NNN charges are estimates based on the previous year's expenses. At the end of the year, the landlord will perform a "reconciliation." If actual expenses were higher than what you paid, you will receive a bill for the difference. If they were lower, you may get a credit.
How do I negotiate a NNN lease?
You usually cannot negotiate Taxes or Insurance, as those are pass-through costs. However, you CAN negotiate CAM charges. Ask for a cap on "controllable expenses" (like management fees) to ensure they don't increase by more than 3-5% per year.