What Is a Triple-Net Lease?
A triple-net lease, also referred to as a net-net-net lease and NNN lease, is a lease agreement where the lessee (a single tenant) is responsible for paying the lessor (landlord) on a net-net-net basis for the following:
real estate taxes;
insurance; and
property maintenance.
Contrary to a single-net lease, double-net lease, and gross lease, technically, the lessor owns the building and land but assigns other operating expenses to the lessee in addition to the basic rent, such as building maintenance and repairs.
What Is a Triple-Net Lease Inspection?
A triple-net lease inspection, also referred to as a net-net-net or NNN inspection, is a type of lease inspection that is performed for a triple-net lease real estate transaction. It should be performed for both the lessor and lessee and can take pre-lease, during the lease, or post-lease.
It’s more common for this type of inspection to be performed on older properties or for long-term leases, but it can also benefit turn-key commercial real estate rentals.
The inspection will be performed in accordance with the International Standards of Practice for Inspecting Commercial Properties (ComSOP), which is designed for a transparent inspection procedure and to provide impartial information about the property.
Whether you’re the landlord or tenant, and whether you’re at the pre-lease, mid-lease or post-lease stage of your commercial real estate contract, having a third-party commercial real estate inspection performed is one of the smartest decisions you can make.