Double vs. Triple vs. Absolute Triple
In commercial real estate, “net lease” properties are those in which the tenant is responsible for paying some or all of the operating expenses associated with the property in addition to their rent. There are several types of net leases, each with different levels of responsibility for operating expenses:
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Double Net (NN): The tenant is responsible for paying their rent and a portion of the property taxes and insurance. The landlord is responsible for maintaining the property and paying for any other operating expenses.
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Triple Net (NNN): The tenant is responsible for paying their rent, a portion of the property taxes, insurance, and all other operating expenses associated with the property.
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Absolute Triple Net (NNNN): Similar to Triple Net, the tenant is responsible for paying their rent, a portion of the property taxes, insurance, and all other operating expenses associated with the property, however, the tenant is also responsible for the maintenance and repair of the building and the grounds.
In summary, in a double net lease, the tenant is responsible for fewer expenses than in a triple net or an absolute triple net lease.