What is a triple net (NNN) lease?

The three “nets” of a triple net lease

A triple net lease (or NNN lease) is a tenant lease agreement where the tenant agrees to pay three “net” expense costs - property taxes, building insurance, and maintenance on the property. They also pay normal fees under the rental agreement, such as rent, utilities, and other agreed-upon fees.

Why invest in a triple net lease

This type of property is attractive for owners who prefer low-maintenance investments, where day-to-day property upkeep is managed by the tenant. In addition, net lease properties tend to have long-term tenants, which provides steady income with relatively lower risk than other investment options.