What is a '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. Triple Net Lease

    A triple net lease assigns sole responsibility to the tenant ...
  2. Lease

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  3. Ground Lease

    A ground lease is an agreement that allows a tenant to develop ...
  4. Sublease

    A sublease is the renting of property by a tenant to a third ...
  5. Operating Lease

    An operating lease is a contract that allows for the use of an ...
  6. Percentage Lease

    A percentage lease is a lease where the tenant pays a base rent ...
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  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 >>
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