Net Lease


DEFINITION of 'Net Lease'

A provision that requires the tenant to pay a portion or all of the taxes, fees and maintenance costs for the property in addition to rent. Net lease requirements are most commonly used with commercial real estate. There are three primary types of net leases: single (net), double (net-net) and triple (net-net-net).

Also referred to as a closed-end lease.


Property owners use net leases in order to shift the burden of managing taxes, insurance and fees to the tenant, and may charge less rent as a result. Though potential tenants may not have to pay as much rent they are still required to pay taxes and fees regardless of how well their business performs, making this an added risk.

  1. Double Net Lease

    An agreement in which the tenant is responsible for both property ...
  2. Gross Lease

    A type of commercial lease where the landlord pays for the building's ...
  3. Net-Net

    A value investing technique in which a company is valued solely ...
  4. Investment Real Estate

    Real estate that generates income or is otherwise intended for ...
  5. Lease

    A legal document outlining the terms under which one party agrees ...
  6. Triple Net Lease

    A lease agreement that designates the lessee (the tenant) as ...
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