Triple Net Purchase For Sale
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FAQ
Commercial spaces may be advertised as ?$12/psf NNN? meaning $12 per square foot is the base rent and the NNN expenses will be in addition to that. CAM, or common area maintenance, is one of the three NNN Expenses that commercial tenants pay for as additional rent.
The monthly cost is represented by the figure you end up with. To calculate the triple net lease price for each tenant in your property, add this monthly cost total to the monthly rental rate per square foot and multiply this figure by the number of square feet of each tenant's rents.
How do you calculate the triple net lease? The NNN lease is computed as the sum of base rent amount, property maintenance charges, tax, and insurance divided by the total number of months in the year, i.e., 12.
Cons of Triple Net Leases Tenants might invest some work and time in property management, from hiring repair companies to comparing and buying insurance and protesting taxes if needed. Some unexpected costs (in maintenance or tax liabilities, for example) may arise during the time of occupancy.
NNN ? Triple Net ?This type of lease rate includes the base rental rate plus the three N's. One ?N? stands for property taxes, one for property insurance, and the final ?N? stands for common area maintenance (CAMs).