Different Types of Leases Explained

By Brian Fielding of Fielding Investments

NNN or Pure-Net Leases

The burden for any sort of problem with the building or space falls onto the tenant.

One of the most common offers made to non-operating investors.

Tend to be long-term leases of 15+ years.

Usually are for regionally and nationally recognized tenants.

These tenants usually have the experience to deal with any issues that may arise.

NNN or Triple-Net Leases Continued

Preferred over all other types of leases.

The tenant assumes full responsibility for all of the utilities, insurance, taxes, maintenance costs, as well as any and all structural elements and building issues that may happen while the tenant is occupying the space.

NN or Double-Net Leases

The burden of some of the structural and site responsibilities (should damage happen) falls upon the investor.

Hard to estimate operating costs.

There is a need to hire someone to overlook the property if the investor is not there in order to make sure that everything is running smoothly.

Another one of the most common leases offered to non-operative investors.

NN or Double-Net Leases Continued

Tenant is responsible for paying all insurance, utilities and taxes as well as the maintenance costs that are associated with the property.

Owner has the responsibility of paying for all expenses that deal with the structural elements of both th building and the land that the building is on.

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