Home Blog NNN Meaning

Jump to Section

Quick Facts — Triple Net Lease Lawyers

The meaning of NNN is usually lost on most people since they will never have to sign or draft a commercial lease throughout their lives. Understanding how leases are different from rent and what to include can ultimately affect the outcome of your next transaction.

Basically, a triple net lease (NNN) is a commercial lease where the lessee pays rent, utilities, and property expenses. The property expenses usually include maintenance, insurance, and taxes, but these can vary depending on the lease.

This article describes how NNN leases work, their expenses, how to calculate them, and other types of commercial lease agreements available in real estate transactions.

What Does NNN Mean?

NNN is another term for a triple net lease. A triple net lease is a type of lease agreement used in some commercial real estate transactions, especially high-volume sales businesses that need space. Some examples are offices, grocery stores, and manufacturing facilities. Under this type of commercial lease, the tenant pays for property taxes, maintenance, and insurance by a percentage of the space they occupy.

This web page also describes NNN leases.

How Triple Net Leases (NNN) Work

Triple net leases are popular with real estate investors looking for a low-risk way to build equity while also earning a consistent, reliable income from the property. By passing on operating expenses and taxes to the tenant, you can mitigate the impact of market fluctuations and tax increases during the lease’s term.

Triple net leases vs. rent income provide significant benefits to property owners, including:

  • Attracts dependable, long-term tenants
  • Hands-off approach for investors
  • Investment stability
  • Equity
  • Flexibility

When an investor leases out a triple net property, they will typically finance the entire cost of the commercial building or a portion of it and then use rental payments to pay off the funded amount. They usually hold a triple net property and use it as an equity builder for at least five years before selling it at the right time.

Acquiring or Converting Property with Tenants

If you are acquiring another owner’s tenants, there should already be a NNN agreement in place that details all of the deal’s specifics, complete with clauses outlining the tenant’s and property owner’s specific financial responsibilities. By purchasing a commercial property that already has a triple net lease in place, you inherit the lease’s terms in their entirety.

Before deciding to purchase the property, you should carefully review the existing lease to determine whether you will be responsible for any insurance premiums or significant structural repair costs.

Acquiring or Converting Property without Tenants

If you are purchasing or converting a building for NNN leases, then you will want to work with a lawyer for lease agreements. They can help you draft an agreement tailored specifically for your unique business needs.

Meet some lawyers on our platform

Lori B.

325 projects on CC
CC verified
View Profile

Randy M.

61 projects on CC
CC verified
View Profile

Philips V.

11 projects on CC
CC verified
View Profile

Chris H.

42 projects on CC
CC verified
View Profile

Expenses Included in Triple Net Leases (NNN)

Triple net leases (NNN) agreements are standard in single-tenant retail buildings and single-user industrial buildings, medical offices, banks, pharmacies, grocers, and restaurateurs. Tenants agree to pay base rent plus taxes, maintenance, insurance, or TMI. Essentially, the tenant is responsible for all variable costs associated with the building’s occupancy.

Expenses included in triple net leases may consist of:

  • Insurance premiums
  • Janitorial & trash removal
  • Landscaping
  • Property taxes
  • Security
  • Signage
  • Utilities and maintenance

Depending on the lease terms, landlords may be responsible for expenses such as roof or parking lot repairs and upgrades to electrical, plumbing, and HVAC systems. Additionally, landlords may be liable for any structural issues that arise with the property not covered by standard maintenance expenses. The lease should specify who is responsible for these expenses when they arise. Due to the high cost of resolving these issues, commercial real estate investors should thoroughly vet any potential triple net lease assets located in older properties.

What’s Not Included in an NNN lease?

While it may appear as though every expense is included in a NNN lease, certain expenses are the landlord’s, such as the ones listed above, or a tenant’s responsibility, such as improvements. Tenant improvements, or TI, refers to work performed on an individual tenant’s space.

A landlord cannot charge tenants for:

It is critical to understand that each lease is unique, and commercial leases can be extremely lengthy and complicated. It is wise to have a knowledgeable legal professional review of the lease to ensure that it includes everything you believe it contains when trying to figure out how to write a lease agreement with solid lease terms.

Triple Net Lease Calculation Example

Now that you have an understanding of NNN leases, or at least have an idea of what could be included, it is good to demonstrate an example. The rent on a commercial building is often calculated using per-square-foot numbers. It is worth analyzing the numbers since they can reveal whether the property is suitable for tenants.

Below, we’ve created a triple net lease calculation example to bring how they work into focus:

  • Janet Getty is an independent commercial landlord who owns a 10,000 square-foot retail building
  • She is asking $12 per square foot under a NNN building lease agreement
  • By multiplying $12 by 10,000 square feet, we come up with a total annual rent of $120,000, or $10,000 per month
  • Similar units in the area rent for nearly $15 per square foot
  • However, Ms. Getty wants to use a NNN lease, which passes TMI costs on to tenants, which may cost the tenant between
  • The prepared estimate indicates that tenants will spend around $2,000 a month in TMI or $24,000 per year
  • This number brings the expected rent total to $144,000 per year or $12,000 per month
  • Now, we can take the new calculation to determine the effective square foot rate at $14.40
  • This retail space, even after NNN obligations, are more cost-effective than other buildings in the area

As you can see from the above-referenced example, the initial rent rate seemed like a great deal, and it still is. However, when you dig into the numbers, you’ll notice how much closer your rent gets to standard square foot rates in your area. That’s what makes a NNN lease so powerful for retailers.

They often require large spaces that can handle high volumes at predictable costs with some tenant control over the amount of rent money.

Other Types of Commercial Leases

Commercial leases come in a variety of forms, meaning that NNN leases are not the only option. As is the case with any legal commercial contract, the parties can tailor the document to their specific transaction and requirements. Start by deciding who will be responsible for certain property-related obligations.

Other types of commercial leases to consider include:

  • Gross Leases: A gross lease requires the tenant to pay only rent. This option is where both the landlord and tenant agree on a fixed monthly rent, with the landlord covering the cost of any necessary repairs, insurance, and taxes, and is ideal for a commercial office lease.
  • Single Net (N) Leases: The tenant is responsible for both monthly rent and property taxes on the property for a single net lease. Maintenance and insurance are the landlord’s responsibility.
  • Double Net (NN) Leases: In a double net lease, the tenant is responsible for monthly rent, property taxes, and insurance, but the property landlord remains solely responsible for maintenance.

A lawyer for lease agreements can help you draft NNN leases or other types of commercial leases that protect your investment and legal rights. They can also address issues such as how to negotiate a commercial lease. Get in touch with a knowledgeable and experienced legal professional from your state today for more information.

Post a project in ContractsCounsel’s marketplace to get flat fee bids from lawyers for your legal project. All lawyers are vetted by our team and peer-reviewed by customers for you to review before hiring.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

Scott S. on ContractsCounsel
View Scott
5.0 (67)
Member Since:
October 27, 2021

Scott S.

Attorney
Free Consultation
New York, NY
19 Yrs Experience
Licensed in NY
Benjamin Cardozo School of Law

I specialize in business law and contracts, with an emphasis on commercial transactions and negotiations, document drafting and review, employment, business formation, e-commerce, technology, healthcare, privacy, commercial real estate, data security and compliance. Specifically, I've drafted, reviewed and/or negotiated thousands of MSA's, NDA's, TOS', SAAS, sales, service, managed services, referral, reseller, royalty, finder’s fee, employment, contractor, consulting, advertising, marketing, manufacturing, distribution, management, artist, author, agency, photography, rental, lease, vendor, partnership, website, platform, application, privacy, non-compete, non-circumvent, confidentiality, IP ownership and licensing agreements so I'm very familiar with these types of documents. Practicing law since 2006, I worked in-house before starting my own solo practitioner law firm in 2011. I've worked with individuals and start-ups, Fortune 500 companies, and every type of entity in between, always providing quality legal work that fits the exact needs of the person and/or business. I’m a graduate of the Benjamin Cardozo Law School and also have an English degree from Penn.

Recent  ContractsCounsel Client  Review:
5.0

"Scott helped me reviewed the contracts and saved me from getting into a trap of an outsourced sales services provider from Philippines and Australia"

Daehoon P. on ContractsCounsel
View Daehoon
4.8 (226)
Member Since:
November 26, 2021

Daehoon P.

Corporate & M&A | Venture Capital, Private Equity & Web3 Counsel | Real Estate Transactions
Free Consultation
New York, NY
10 Yrs Experience
Licensed in NY
American University Washington College of Law

Corporate, M&A & Securities Lawyer | Managing Attorney, DP Counsel PLLC Practice Areas: Business Formation | Commercial Contracts | Contract Drafting & Review | Mergers & Acquisitions | Venture Capital | Securities Offerings | Franchise Law | Employment & Equity Compensation | Intellectual Property | Cross-Border Transactions About/Bio: I represent companies, investors, and fund sponsors in corporate transactions, commercial contracting, and private securities matters, from entity formation and early-stage financings to acquisitions, exits, and ongoing strategic counsel. As Managing Attorney of DP Counsel PLLC, I help clients structure transactions clearly, allocate risk thoughtfully, and move deals forward with documentation that is practical, enforceable, and aligned with business objectives. My practice includes both day-to-day commercial matters and more complex transactional work, including venture financings, private offerings, M&A deals, fund-related documents, and cross-border structuring. What I Do: Corporate & Commercial • Entity formation and structuring for corporations, LLCs, and limited partnerships • Operating agreements, shareholder agreements, and governance documents • Commercial contract drafting, review, and negotiation • Vendor, distribution, manufacturing, SaaS, and licensing agreements • Employment, consulting, confidentiality, and equity compensation agreements • Outside general counsel support for growing companies Securities & Private Capital • Private offerings under Regulation D and Regulation S • Private placement memoranda, subscription agreements, and investor documents • SAFE, convertible note, and priced equity financings • Venture capital and private fund formation matters • Fund governing documents and offering document packages • Securities law analysis for private capital raising transactions Mergers & Acquisitions • Letters of intent and term sheets • Stock purchase, asset purchase, and merger agreements • Due diligence coordination and transaction support • Disclosure schedules, closing documents, and post-closing matters • Earnouts, rollover equity, indemnity structures, and related deal terms • HSR, CFIUS, and related regulatory issue spotting for qualifying transactions Digital Assets & Emerging Technologies • Federal-law digital asset and token securities analysis • Entity structuring for blockchain and Web3 ventures • Digital asset fund and operating structures • AML/KYC documentation support and regulatory issue spotting Franchising • Franchise Disclosure Documents (FDDs) • Franchise agreements • Master franchise and area development agreements • Franchise structuring and registration coordination Real Estate Transactions • Commercial real estate acquisitions and dispositions • Real estate joint ventures and syndications • Commercial lease drafting and negotiation • Real estate investment structures and related offering documents Cross-Border & International • U.S. market entry and entity structuring for international clients • Delaware and multi-entity holding structures • Cross-border transaction planning and documentation • Coordination with foreign counsel and tax advisors on cross-border matters Why Clients Hire Me: • Big-law-level drafting with boutique responsiveness • Practical, business-focused advice grounded in execution reality • Clear scoping and transparent fee arrangements • Experience across financings, acquisitions, fund formations, and cross-border transactions Typical Projects: • Contract drafting and negotiation • Entity formation and governance packages • Private offering document suites • Venture financing documentation • M&A transactions from LOI through closing • Fractional or outside general counsel support Industries Technology | SaaS | FinTech | Digital Assets | E-commerce | Healthcare | Real Estate | Food & Beverage | Professional Services

Recent  ContractsCounsel Client  Review:
4.3

"Solid drafting work on a B2B paid services agreement with a nuanced surcharge model. Daehoon delivered on time across two rounds, cited actual Illinois case law where relevant, and proactively flagged edge cases I hadn't specifically asked about. His initial bid was the sharpest of the seven I received — he clearly read the parameters carefully. One note for future buyers: scope discipline runs both ways with him. He'll flag scope creep quickly and quote a supplemental fee (in my case $600 on a $1,200 base) for revisions beyond the follow-up envelope. That's fair and clearly communicated, but budget for it if you expect iteration. Would hire again for drafting work where scope is well-defined upfront."

Tim E. on ContractsCounsel
View Tim
4.8 (65)
Member Since:
August 12, 2020

Tim E.

Founding Member/Attorney
Free Consultation
Cleveland, OH
12 Yrs Experience
Licensed in OH
Cleveland State University College of Law

I am a business attorney focused on providing practical, targeted legal services for small businesses, startups, contractors, consultants, and service providers. I help clients efficiently review, draft, and improve everyday business contracts, including service agreements, NDAs, independent contractor agreements, vendor contracts, commercial leases, and purchase documents. My approach is straightforward: identify the terms that matter, explain risks in plain English, and deliver clear, usable edits or drafts without unnecessary complexity. I regularly handle fixed-fee, quick-turnaround projects such as contract reviews, agreement drafting, and demand or termination letters. While I offer streamlined, project-based services for routine matters, I can also assist with broader business legal needs as they arise.

Recent  ContractsCounsel Client  Review:
5.0

"Excellent experience with Tim on my relatively complex EULA for a suite of network appliance products. Tim was very fair with pricing, responsive, diligent, thorough, technically knowledgeable, took the time to address all my questions and concerns, and finished (with revision) on schedule and budget. Great experience overall and I'll definitely be using Tim for more work in the future with my business. I'll also be using Contract Counsel and recommending it to everyone I know as well! THANK YOU! -Devin"

Ryenne S. on ContractsCounsel
View Ryenne
4.9 (612)
Member Since:
October 11, 2022

Ryenne S.

Principal Attorney
Free Consultation
Chicago, Illinois
16 Yrs Experience
Licensed in IL
DePaul University College of Law

My name is Ryenne Shaw and I help business owners build businesses that operate as assets instead of liabilities, increase in value over time and build wealth. My areas of expertise include corporate formation and business structure, contract law, employment/labor law, business risk and compliance and intellectual property. I also serve as outside general counsel to several businesses across various industries nationally. I spent most of my early legal career assisting C.E.O.s, General Counsel, and in-house legal counsel of both large and smaller corporations in minimizing liability, protecting business assets and maximizing profits. While working with many of these entities, I realized that smaller entities are often underserved. I saw that smaller business owners weren’t receiving the same level of legal support larger corporations relied upon to grow and sustain. I knew this was a major contributor to the ceiling that most small businesses hit before they’ve even scratched the surface of their potential. And I knew at that moment that all of this lack of knowledge and support was creating a huge wealth gap. After over ten years of legal experience, I started my law firm to provide the legal support small to mid-sized business owners and entrepreneurs need to grow and protect their brands, businesses, and assets. I have a passion for helping small to mid-sized businesses and startups grow into wealth-building assets by leveraging the same legal strategies large corporations have used for years to create real wealth. I enjoy connecting with my clients, learning about their visions and identifying ways to protect and maximize the reach, value and impact of their businesses. I am a strong legal writer with extensive litigation experience, including both federal and state (and administratively), which brings another element to every contract I prepare and the overall counsel and value I provide. Some of my recent projects include: - Negotiating & Drafting Commercial Lease Agreements - Drafting Trademark Licensing Agreements - Drafting Ambassador and Influencer Agreements - Drafting Collaboration Agreements - Drafting Service Agreements for service-providers, coaches and consultants - Drafting Master Service Agreements and SOWs - Drafting Terms of Service and Privacy Policies - Preparing policies and procedures for businesses in highly regulated industries - Drafting Employee Handbooks, Standard Operations and Procedures (SOPs) manuals, employment agreements - Creating Employer-employee infrastructure to ensure business compliance with employment and labor laws - Drafting Independent Contractor Agreements and Non-Disclosure/Non-Competition/Non-Solicitation Agreements - Conducting Federal Trademark Searches and filing trademark applications - Preparing Trademark Opinion Letters after conducting appropriate legal research - Drafting Letters of Opinion for Small Business Loans - Drafting and Responding to Cease and Desist Letters I service clients throughout the United States across a broad range of industries.

Recent  ContractsCounsel Client  Review:
5.0

"Ryenne was wonderful to work with! She went through each section of my contract line by line with me and made sure I understood every aspect."

Alen A. on ContractsCounsel
View Alen
5.0 (13)
Member Since:
August 26, 2021

Alen A.

Attorney
Free Consultation
Los Angeles, CA
19 Yrs Experience
Licensed in CA
University of West Los Angeles

Alen Aydinian is a seasoned real estate attorney with a wealth of experience in handling transactional matters, real estate transactions, and lease agreements. As a licensed real estate broker, Alen Aydinian brings a unique perspective to the table, allowing clients to benefit from both legal expertise and practical industry knowledge. He is a trusted advisor in the realm of real estate transactions and lease agreements. Whether representing buyers, sellers, landlords, or tenants, Alen Aydinian is committed to providing strategic counsel and dedicated advocacy every step of the way. Clients rely on him for sound legal guidance, proactive problem-solving, and unwavering support throughout the transaction process.

Recent  ContractsCounsel Client  Review:
5.0

"I contracted Alen for a commercial lease review. I couldn't be happier with the results, as he exceeded my expectations. He completed the project 2 days ahead of the estimated timeframe, gave me high quality feedback, and suggested alternate language. We had a call at the end and he answered all of my questions in detail. Incredible value. I'm so happy I chose Alen, and I definitely recommend him to anyone else needing legal assistance."

Stephen H. on ContractsCounsel
View Stephen
5.0 (2)
Member Since:
July 23, 2025

Stephen H.

Partner
Free Consultation
Waukesha, WI
16 Yrs Experience
Licensed in WI
Marquette Law

In practice for over 15 years. I am passionate about results and the bottom line. Let me help your business or project today.

Recent  ContractsCounsel Client  Review:
5.0

"Stephen was extremely responsive and helpful for a time sensitive matter. Thank you for everything with this tricky one!"

Zachariah C. on ContractsCounsel
View Zachariah
5.0 (22)
Member Since:
July 28, 2025

Zachariah C.

Business Lawyer
Free Consultation
Colorado Springs, CO
5 Yrs Experience
Licensed in CO
Liberty University School of Law

Colorado Springs attorney and entrepreneur dedicated to democratizing access to high quality legal solutions through the transformative power of Artificial Intelligence.

Recent  ContractsCounsel Client  Review:
5.0

"Zachariah is an excellent Lawyer! Respond right away, did the project with ease and was really nice on the phone. The letter was absolutely perfect. I would absolutely hire Zachariah without any hesitation. Thank you Zachariah!"

Find the best lawyer for your project

Browse Lawyers Now

See Real Triple Net Lease Projects

Wyoming NNN 2325-SG Drafting
  • Wyoming
  • 4 lawyer bids
  • $750 - $2,500
View Details
Texas Create Insurance clause on triple net lease Drafting
  • Texas
  • 3 lawyer bids
  • $375 - $700
View Details
Texas I have a commercial property (health clinic) on NNN lease, I want to get the contract reviewed Review
  • Texas
  • 4 lawyer bids
  • $625 - $1,750
View Details

See all Triple Net Lease projects

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Need help with a Triple Net Lease?

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

CONTRACT LAWYERS BY TOP CITIES
See All Real Estate Lawyers

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city