DEFINITION of 'Single Net Lease'

A commercial real estate lease agreement in which the tenant is required to pay property taxes in addition to rent. A single net lease is a form of pass through lease in which taxes associated with the property become the responsibility of the tenant instead of the landlord. The landlord is responsible for the other operating expenses incurred of the property.

BREAKING DOWN 'Single Net Lease'

Single net leases are less common than double and triple-net leases, as the latter two pass more costs onto the tenant; specifically, insurance and maintenance costs. Single net leases are typically good investments in both good and bad economic times. This is because the terms of the lease are predetermined with a steady income coming in.

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RELATED FAQS
  1. What are the differences between single, double and triple-net leases?

    Learn the ins and outs of net lease agreements, including the key differences between single net, double net and triple net ... Read Answer >>
  2. How does the value of the real estate impact the value of a triple net (NNN) lease?

    Understand how the value of the real estate involved in a triple-net lease impacts the value of the lease both positively ... Read Answer >>
  3. What are the three "nets" of an NNN lease?

    Learn what the three "nets" are in an NNN lease and how they affect the responsibilities of both landlord and tenant in a ... Read Answer >>
  4. What kinds of real estate transactions use triple net (NNN) leases?

    Learn how a net-net-net or triple net lease works and why it is popular in commercial real estate transactions. It is also ... Read Answer >>
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