Triple net lease: A comprehensive overview
Explore how we can help businesses with their commercial lease requirements.
Contact our teamA Triple Net Lease (NNN) is a common type of commercial lease where the tenant takes on a significant portion of the property’s financial responsibilities.
Unlike other lease structures, where the landlord handles most of the property’s expenses, a triple net lease passes costs like maintenance, taxes, and insurance onto the tenant. This arrangement provides a balance of benefits and obligations, offering potential savings for landlords while giving tenants greater control over the property’s expenses.
Whether you’re a tenant looking to manage a property more independently or a landlord interested in reducing the burden of ongoing costs, it’s essential to fully understand how a triple net lease operates.
What exactly is a triple net lease?
In a triple net lease, tenants are responsible for three key costs in addition to their base rent: property taxes, building insurance, and maintenance costs (hence, the “triple” ). This lease structure is most commonly seen in retail spaces, industrial properties, and long-term commercial leases. The tenant takes on more financial responsibility, but also has greater control over certain aspects of the property’s upkeep.
For landlords, this arrangement transfers the bulk of ongoing expenses to the tenant, which can make the investment more predictable and less costly to maintain. For tenants, the benefit lies in having more transparency and control over the property’s maintenance and insurance, though this also comes with the responsibility of managing these costs.
Richard Hughes
Partner | Commercial Property, Real Estate, Real Estate Finance
How Moore Barlow can guide you through the process
Moore Barlow’s commercial property experts understand the intricacies of triple net leases and how important it is for both tenants and landlords to have clear, well-structured agreements. We work with both parties to ensure the lease accurately reflects their needs and is legally sound.
Our team helps to explain the breakdown of responsibilities and ensure the tenant fully understands their obligations under a triple net lease, assists landlords in drafting or reviewing lease terms that align with their financial and long-term property goals and lastly, offers ongoing support during the lease term, providing guidance on resolving disputes or handling changes to responsibilities as needed.
We ensure that both parties know exactly what they are signing up for, mitigating the risk of misunderstandings that can arise from the unique responsibilities involved in an NNN lease.
Why work with Moore Barlow?
Choosing Moore Barlow means benefiting from our extensive experience in commercial property law. Our team is well-versed in helping clients navigate the complexities of triple net leases, ensuring that all responsibilities and financial obligations are fully understood from the outset. We pride ourselves on clear communication and practical solutions that are tailored to each client’s individual needs.
Whether you’re a landlord wanting to reduce your management burden or a tenant taking on the care of a commercial property, we ensure your lease is structured in a way that protects your interests while keeping the relationship balanced and fair.
What is the difference between a triple net lease and an absolute net lease?
A triple net lease requires the tenant to pay property taxes, insurance, and maintenance. An absolute net lease goes further, holding the tenant responsible for all property costs, including major repairs like structural issues, with no landlord obligations.
Our clients
We work with a variety of clients in the commercial property space, including retail businesses, industrial property tenants, and landlords with extensive portfolios. Our clients range from smaller businesses to larger corporations looking for long-term leasing solutions. No matter the size or complexity of the transaction, our team offers tailored, strategic advice that suits your unique situation.
Meet our team of commercial property solicitors
Jo Farr
Partner | Commercial Property, Real Estate, Land Development, Real Estate Finance
Richard Hughes
Partner | Commercial Property, Real Estate, Real Estate Finance
Julian Parkes
Partner | Commercial Property, Real Estate, Landed Estates and Farming
Callum Leary
Partner | Commercial Property, Real Estate, Real Estate Finance
Nellie van der Lande
Senior Associate | Commercial Property, Real Estate Finance, Rural Services
Sam Ho
Senior Associate | Commercial Property, Real Estate, Real Estate Finance
Sharon Mays
Senior Associate | Commercial Property, Real Estate, Land Development, Real Estate Finance
Nicola Donnelly
Associate | Real Estate, Plot Sales, Residential Property
Fiona Hampton
Chartered Legal Executive | Commercial Property, Land Development, Plot Sales
Helen Archibald
Consultant | Commercial Property, Real Estate, Land Development
Janice Taylor
Conveyancing Executive | Real Estate, Plot Sales, Residential Property
Get in touch
If you’re considering a triple net lease or need advice on an existing agreement, Moore Barlow’s commercial property solicitors are here to help. Reach out to us today to discuss your needs and ensure your lease is carefully crafted to safeguard your interests.
With our expertise, you can navigate the complexities of an NNN lease with confidence, knowing your rights and obligations are fully protected.
