1. What is a Commercial Triple Net Lease?

A commercial triple net lease (NNN lease) is a lease agreement where the tenant pays all or part of the three "nets" - property taxes, building insurance, and common area maintenance (CAM) - in addition to base rent. This shifts most property expenses from the landlord to the tenant.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Base\ Rent \) — Fixed monthly rent amount
• \( NNN\ Expenses \) — Combined costs of property taxes, insurance, and maintenance

Explanation: The total lease payment is the sum of the base rent and all additional expenses that the tenant is responsible for under the lease agreement.

3. Importance of Lease Payment Calculation

Details: Accurate lease payment calculation is crucial for commercial tenants to budget properly and understand their total occupancy costs. It helps in comparing different lease options and negotiating terms.

4. Using the Calculator

Tips: Enter the base rent amount and estimated NNN expenses in USD. Both values must be non-negative numbers. The calculator will sum these amounts to show your total lease payment obligation.

5. Frequently Asked Questions (FAQ)

Q1: What's typically included in NNN expenses?
A: Usually includes property taxes, building insurance, and common area maintenance (CAM), but may also include utilities, repairs, or other costs depending on the lease.

Q2: Are NNN expenses fixed or variable?
A: They typically vary year-to-year based on actual costs, though some leases may cap annual increases.

Q3: How are NNN expenses calculated?
A: Usually calculated as a pro-rata share based on the square footage you lease compared to the total property.

Q4: What's the advantage of a NNN lease for landlords?
A: It provides predictable income by transferring variable expenses to tenants.

Q5: What should tenants watch out for in NNN leases?
A: Carefully review expense pass-through provisions, audit rights, and expense caps to avoid unexpected costs.