What's Hot | Leasing
What is the downside of a triple net lease?
For a tenant, the base rent is only part of the cost. Taxes, insurance and maintenance come on top and can change from year to year.
When this comes up: you are about to sign a lease, or you are buying a building that is leased on net terms.
For an owner or a buyer, the lease is the asset. The strength of the tenant and the length of the term matter more than the rate on the page.
Questions for an attorney
- Which costs pass through to the tenant, and is there a cap?
- What happens to those costs if the building is sold or the taxes are reassessed?
- What does the tenant owe at the end of the term?
We can show you how a lease like this affects a building's value to the next buyer. What the clauses mean legally is a question for your attorney, and we will connect you with counsel.
General information, not legal advice. Ask a licensed attorney about your situation.