Single Net Lease

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 4,117 reviews

Jump to Section

Need help with a Single Net Lease?

Post Project Now

Post Your Project (It's Free)

Get Bids to Compare

 Hire Your Lawyer

What is a Single Net Lease?

Single net lease (SNN or N lease) is a legitimate, modest and viable option for building wealth in commercial real estate. The "N" in this lease agreement stands for "Net," which symbolizes the property tax that the tenant pays plus other operating costs. In other terms, tenants pay for property taxes and utility costs.

On the other hand, landlords cater for another addendum to lease expenses like insurance, repair, and maintenance costs. For ages, most individuals presumed a single net lease as a risky commercial lease agreement.

Years down the line and with a more informed market audience, things have changed significantly recently. As a result, experts now aggressively champion this lease structure due to its plethora of benefits.

All in all, SNN is an agreement between multitenant building owners and single tenants that makes the latter responsible for insurance, property taxes, maintenance, and common area rent. As a result, landlords perceive SNN as a less perilous investment project because it cuts costs in maintenance charges.

The basic concept behind a single net lease is that tenants only pay a percentage lease to share the building's common expenses. In short, you don't pay for any of the building's fixed costs as they get covered by your property manager, leasing agent, and subtenant. This is a total contrast to a passthrough lease where additional expenses like insurance and repairs shift from landlords to tenants.

Key Terms in a Single Net Lease

Each industry has its share of terms that expedite or simply the running process. The real estate industry is not left behind on this, especially during the assignment of leases. Binding industry terms in a commercial lease include:

Rentable Square Feet

This is a common term used to define shared areas among several tenants in a building lease. It's all about the number of usable square feet in a property, including office space and common areas like hallways, restrooms, recreational, and staircases.

Meet some lawyers on our platform

Jose P.

1 project on CC
View Profile

Rebecca L.

2 projects on CC
View Profile

Karen S.

1 project on CC
View Profile

Albert M.

9 projects on CC
View Profile

Usable Square Feet

Real estate experts use this office lease metric to describe square footage rented by a tenant. For example, the total space may encompass the storage area, closets, private restrooms, and other spots accessible by tenants.

Lease Term

Lease terms are an essential detail to decide on when making your single net lease agreement. It will influence many factors, like the amount of rent you can charge and how much time you'll have to find a new tenant.

Insurance Types

Since an office space holds a leading position in overall performance, reliable insurance options are critical in minimizing risks. Experts recommend viable policies like leasehold, property & liability, and business interruption.

Agreement Clauses

A practical assignment of lease should include an agreement clause to protect your assets from any potential liabilities that may occur due to the tenant's actions. Three essential clauses commonly found in a lease agreement are rent, term, and use.

ContractsCounsel Single Net Lease Image

Image via Pexels by Leohoho

What Does a Single Net Lease Provide?

A single net lease is a form of a lease agreement that gives you the benefits of both a gross lease and a net lease. However, it is more fixed than a gross lease but less flexible than a net lease.

For some retail and other business owners, it provides a great way to structure ownership, use, and occupancy while improving tax benefits. Without any doubt, this provides a perfect balance of risk and reward.

Advantages of a Single Net Lease

A single net lease can dramatically simplify your business. In addition, it gives you more time for the work that matters, like marketing and sales. Here are other benefits associated with a single net lease .

Increased Cash Flow

Unknown to most people, a single net lease enables organizations and businesses to lower operational costs. In this legal agreement, tenants pay all applicable taxes, insurance, and maintenance for the rented space. This plan helps increase cash flow for the landlord and other investors in the long run.

Reduced Real Estate Tax Exposure

Landlords have a legal obligation to collect and pay real estate taxes on commercial properties. This approach has particular implications on how the landlord files his tax return and on certain taxpayers like Real Estate Investment Trusts (REITs). A single net lease can be a great way to lower taxable income for a landlord in such circumstances.


Nothing beats the flexibility associated with a single net lease. However, you can enhance the prowess of this lease agreement by including a Landlord's Deduction clause in the agreement. It allows a landlord to receive reimbursement for any costs incurred during or after the tenancy term. Moreover, it gives a tenant accounting transparency and financial liability protection.

Disadvantages of a Single Net Lease

While a single net lease does offer considerable cost savings to the owner and lessee, it also has some drawbacks in certain circumstances.


Although SNN eliminates the process of sending leases, taking photos, and getting sign-offs from tenants, there is more to that. Keep in mind that single net leases require detailed planning for impressive results. Landlords and tenants in a hurry may opt for other alternatives like double or triple leases.


Taking on a single net lease might seem like you're getting the best of both worlds. Nonetheless, they can be more expensive in the long run than a regular lease. The reason is that with a single net lease, you end up paying for repairs and expenses that landlords would typically cover with a gross or triple net lease.

Challenge Calculating Monthly Profit

Due to irregular costs of building maintenance fees and insurance premiums, estimating monthly profits can be a huddle for most landlords. Still, this type of lease works perfectly for those with plenty of time and who are not concerned about regular ROI.

Single Net Lease vs. Gross Lease

In a gross lease, landlords cover approximated costs like utilities, insurance, repairs, and taxes. At the same time, the tenant forfeits a fixed percentage of rent. This is different from a modified gross lease, where a landlord and a tenant share responsibilities in paying for operating costs equally.

Tenants on a single net lease have the upper hand in such a scenario because the landlord pays for a considerable percentage of building expenses.

Single Net Lease vs. Double Net Lease

When signing a double net lease agreement (net-net or NN), tenants consent to cater for a couple of property expenses like insurance premiums, utilities, and taxes. This is contrary to a single net lease where a tenant pays for property taxes plus rent.

Single Net Lease vs. Triple Net Lease (NNN)

A triple Net Lease, also referred to as NNN or net-net-net, requires tenants to pay for repairs, maintenance, insurance, taxes, and rent. In the lease agreement, the landlord is in charge of most financial responsibilities affiliated with the property. Mainly, the landlord remains responsible for maintenance and insurance costs, unlike triple and double lease agreements.

Bottom Line

It is the dream of every commercial real estate investor to benefit from a significant ROI. Unfortunately, most property owners run from a single net lease because of its complexity, particularly when leasing office structures. Astute business owners can realize substantial savings and avoid several risks. It is vital to weigh through pros and cons before consenting to this type of lease structure.

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

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 Single Net Lease Lawyers

David W. on ContractsCounsel
View David
5.0 (1)
Member Since:
September 27, 2021

David W.

Free Consultation
7 Yrs Experience
Licensed in WI
Marquette Law School

The Law Office of David Watson, LLC provides comprehensive and individualized estate-planning services for all stages and phases of life. I listen to your goals and priorities and offer a range of estate-planning services, including trusts, wills, living wills, durable powers of attorney, and other plans to meet your goals. And for convenience and transparency, many estate-planning services are provided at a flat rate.

Samuel R. on ContractsCounsel
View Samuel
5.0 (20)
Member Since:
October 1, 2021

Samuel R.

Free Consultation
Phoenix - Arizona
4 Yrs Experience
Licensed in AZ, PA, UT
Widener University Delaware Law School

My career interests are to practice Transactional Corporate Law, including Business Start Up, and Mergers and Acquisitions, as well as Real Estate Law, Estate Planning Law, and Intellectual Property Law. I am currently licensed in Arizona and Pennsylvania, after having moved to Phoenix in September 2019. I am currently General Counsel for a bioengineering company. I handle everything from their Mergers & Acquisitions, Private Placement Memorandums, and Articles of Amendment to Intellectual Property Assignments, to Employment Law and Beach of Contract settlements. I have 4 years experience handling commercial breach of contract cases working with Burton Neil & Associates, P.C. I have experience with Intellectual Property infringement after having worked for Ryley Carlock & Applewhite. I have also recently gained experience with Estate Planning law, drafting numerous Estate Planning documents for people such as Wills, Powers of Attorney, Healthcare Directives, and Trusts. I am looking to further gain legal experience in these fields of law as well as expand my legal experience assisting business start ups, mergers and acquisitions and also trademark registration and licensing.

Gregory B. on ContractsCounsel
View Gregory
5.0 (53)
Member Since:
October 18, 2021

Gregory B.

Free Consultation
San Diego, CA
4 Yrs Experience
Licensed in CA
University of San Diego

I love contracts - and especially technology-related contracts written in PLAIN ENGLISH! I've worked extensively with intellectual property contracts, and specifically with IT contracts (SaaS, Master Subscriptions Agreements, Terms of Service, Privacy Policies, License Agreements, etc.), and I have built my own technology solutions that help to quickly and thoroughly draft, review and customize complex contracts.

Jordan M. on ContractsCounsel
View Jordan
5.0 (2)
Member Since:
October 13, 2021

Jordan M.

Free Consultation
Houston, TX
4 Yrs Experience
Licensed in TX
University of Houston Law Center

I am a software developer turned lawyer with 7+ years of experience drafting, reviewing, and negotiating SaaS agreements, as well as other technology agreements. I am a partner at Freeman Lovell PLLC, where I lead commercial contracts practice group. I work with startups, growing companies, and the Fortune 500 to make sure your legal go-to-market strategy works for you.

Atilla B. on ContractsCounsel
View Atilla
Member Since:
October 4, 2021

Atilla B.

Free Consultation
Denver, CO
4 Yrs Experience
Licensed in CO, DC
American University - Washington College of Law

Atilla Z. Baksay is a Colorado-based attorney practicing transactional and corporate law as well as securities regulation. Atilla represents clients in the negotiation and drafting of transactional (e.g. master service, purchase and sale, license, IP, and SaaS agreements) and corporate (e.g. restricted stock transfers, stock options plans, convertible notes/SAFE/SAFT agreements, bylaws/operating agreements, loan agreements, personal guarantees, and security agreements) contracts, in-house documents (e.g. employment policies, separation agreements, employment/independent contractor/consultant agreements, NDAs, brokerage relationship policies, and office policy memoranda), and digital policies (e.g. terms of service, privacy policies, CCPA notices, and GDPR notices). Atilla also reviews, and issues legal opinions concerning, the security status of digital currencies and assets. Following law school, Atilla practiced international trade law at the Executive Office of the President, Office of the United States Trade Representative, where his practice spanned economic sanctions enacted against goods originating in the People’s Republic of China valued at $500 billion. Afterwards, Atilla joined a Colorado law firm practicing civil litigation, where the majority of his practice comprised of construction defect suits. Today, Atilla's practice spans all corporate matters for clients in Colorado and the District of Columbia.

Clara D. on ContractsCounsel
View Clara
Member Since:
October 8, 2021

Clara D.

Free Consultation
20 Yrs Experience
Licensed in IL
University of Chicago

After graduating from The University of Chicago Law School in 2002, Clara spent eight years in private practice representing clients in complex commercial real estate, merger and acquisition, branding, and other transactional matters. Clara then worked as in-house counsel to a large financial services company, handling intellectual property, vendor contracts, technology, privacy, cybersecurity, licensing, marketing, and otherwise supporting general operations. She opened her own practice in September of 2017 and represents hedge funds, financial services companies, and technology companies in a range of transactional matters.

Grant P. on ContractsCounsel
View Grant
Member Since:
October 11, 2021

Grant P.

Free Consultation
New York
20 Yrs Experience
Licensed in FL, NJ, NY

Founder and owner of Grant Phillips Law.. Practicing and licensed in NY, NJ & Fl with focus on small businesses across the country that are stuck in predatory commercial loans. The firm specializes in representing business owners with Merchant Cash Advances or Factoring Arrangments they can no longer afford. The firms clients include restaurants, truckers, contractors, for profit schools, doctors and corner supermarkets to name a few. GRANT PHILLIPS LAW, PLLC. is at the cutting edge of bringing affordable and expert legal representation on behalf of Merchants stuck with predatory loans or other financial instruments that drain the companies revenues. Grant Phillips Law will defend small businesses with Merchant Cash Advances they can no longer afford. Whether you have been sued, a UCC lien filed against your receivables or your bank account is levied or frozen, we have your back. See more at

Find the best lawyer for your project

Browse Lawyers Now

Want to speak to someone?

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

Request a call