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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).

NNN leases are computed by multiplying the total annual property taxes and insurance for the area by the entire rental square footage of the building.

(Same as Rentable Area). The area (square footage) for which rent can be charged. Generally it is the gross area of the full floor less the area of all vertical penetrations (elevator shafts, stairwells, mechanical shafts etc.)

What Is a Triple Net Lease (NNN)? A triple net lease (triple-net or NNN) is a lease agreement on a property whereby the tenant or lessee promises to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance. These expenses are in addition to the cost of rent and utilities.

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.

To measure commercial square footage for a rectangular space, multiply the length of the room in feet by its width. For example, a room that is 12 feet long by 12 feet wide is 144 square feet.

Triple nets are typically calculated by projecting the total amount of expenses for the coming year, dividing it by the total rentable square footage of the building, and then dividing that by 12.