NNN Lease Estimator
Calculate total occupancy costs for a Triple Net (NNN) lease including base rent and all pass-through expenses.
NNN Expenses ($/SF/Year)
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Expert FAQ
What is the difference between "NNN" and "Absolute Net"?
In a standard NNN, the tenant pays taxes, insurance, and CAM, but the landlord may still be responsible for the roof and structure. In an "Absolute Net" (common with 7-Eleven or Walgreens), the tenant covers everything, including structural repairs.
How does a "Base Year" expense stop work?
Mostly used in Modified Gross leases, an expense stop caps the landlord's exposure. The tenant pays all increases in operating expenses over the "Base Year" amount, which is typically the first year of the lease.
What is an "Expense Reimbursement Audit"?
Institutional tenants often have the right to audit the landlord's books annually to ensure they aren't being overcharged for CAM, management fees, or capital expenses inappropriately classified as repairs.
Why are "Roof and Structure" responsibilities so critical?
Replacement of a roof can cost hundreds of thousands of dollars. Negotiating whether these costs are capitalized and amortized over many years or paid upfront by the landlord is a major point in NNN lease negotiations.
How do "1031 Exchange" buyers drive pricing in the NNN market?
1031 buyers often have strict deadlines and favor passive NNN assets. This high demand from tax-motivated buyers often pushes NNN cap rates lower than other asset classes because speed and passivity are prioritized.