Investor Resource

Triple-Net (NNN) Retail Explained

A plain-language overview of NNN lease structures and what makes them attractive to passive commercial real estate investors.

What NNN Means

Under a triple-net lease the tenant reimburses the landlord for property taxes, insurance, and common area maintenance (CAM) — the three 'nets'. Base rent is typically quoted per square foot per year on top of these reimbursements.

Landlord Responsibilities

NNN reduces but does not eliminate the landlord's role. Structural elements (roof, foundation, sometimes parking) are commonly landlord-maintained, and the owner still administers reconciliations, insurance, and lease compliance.

  • Roof and structure typically landlord
  • Annual NNN reconciliation with tenants
  • Lease administration and renewals
  • Property insurance carrier of record

Why Investors Favor It

Predictable expense pass-throughs make cash flow easier to underwrite. Multi-tenant NNN adds diversification versus single-tenant net lease.

Educational content only. Not tax, legal, or investment advice. Consult qualified professionals for your specific situation.