144 square feet

In the commercial leasing industry, $/SF/year or $/SF/yr means the rent per square foot per year. This is because most commercial rental rates are usually quoted in dollars per square foot on an annual basis. Let’s look at this through an example.

dollars per square foot

base rent per square foot

The NNN fees are property taxes, property insurance and common area maintenance. For example, the lease rate may be quoted as $15 NNN. That means the rent is $15 per foot per year plus the NNN.

Lease rate: $20.00/SF/YR MG. This means that if you are leasing a space that is 1,200 SF then the rent per month will be $2,000.00 for the first full year of the lease term.

Triple Net rent

Why Triple Net Leases are Popular With Investors As such, the risk of a credit tenant defaulting on their lease payments is low, even in times of economic distress. Examples of credit include CVS, Walgreens, and Dollar General.

NNN stands for net, net, net. It means that the tenant pays most of the expenses. They pay the rent fees plus property taxes, property insurance, and CAM, or common area maintenance. The NNN fees are added onto the base rental fee, which is usually calculated as a dollar-per-square-foot number like $15.

The estimated operating expenses (aka NNN) are $10 per square foot per year. The total yearly rent you would pay equals $40 sf per year. So if you are leasing 3,000 sf then your yearly rent would be $120,000 or $10,000 per month.

No Nut November

The NNN fees includes property taxes, property insurance and common area maintenance for a building (CAM). This means that in addition to the $14 square foot yearly rate you are also responsible for paying the taxes, insurance, and common area maintenance fees.

A triple net lease (triple-Net or NNN) is a lease agreement on a property whereby the tenant or lessee promises to pay all the expenses of the property including real estate taxes, building insurance, and maintenance.

In a triple net lease property, the tenant agrees to pay for all the expenses involved in operating the property. These expenses include fixed and variable expenses, as well as common area maintenance costs (CAM). Generally, the owner is responsible only for structural repairs.

A periodic tenancy allows a tenant to remain within the property for an undetermined period of time, as the lease has no set end date. The lease, however, typically stipulates when notice to vacate is required, and both parties are bound to adhere to that clause. Another kind of tenancy is tenancy-at-sufferance.

The most obvious benefit of using a triple net lease for a tenant is a lower price point for the base lease. Successful properties with low vacancy rates also make triple net lease attractive for a tenant as the taxes, insurance, and maintenance costs are divided by a greater number of fellow tenants.

Rents are generally lower with net leases than traditional leases—the more expenses a tenant has to bear, the lower base rent a landlord charges. But triple net leases are usually bondable leases, which means a tenant cannot back out because the costs—especially maintenance costs—may be higher.

Absolutely not! There are many areas where a tenant can negotiate a NNN lease to make it more favorable. If the tenant is taking on all responsibility and risk of the landlord’s overhead, then the tenant may be able to negotiate a more favorable base rental amount.

The three most common types of leases are gross leases, net leases, and modified gross leases….3 Types of Leases Business Owners Should Understand

1. The Gross Lease. The gross lease tends to favor the tenant.
2. The Net Lease.
3. The Modified Gross Lease.

Triple Net Lease

Different types of leases

• Financial Lease.
• Operating Lease.
• Leveraged and non-leveraged leases.
• Conveyance type lease.
• Sale and leaseback.
• Full and non pay-out lease.
• Specialized service lease.
• Net and non-net lease.

The difference between lease and rent is that a lease generally lasts for 12 months while a rental agreement generally lasts for 30 days. That means the landlord can’t raise the rent without your written consent or evict you without cause, and you can’t stop paying rent or break the lease without consequence.

Lease vs rent: Key differences

Renting is for when you only need a car for a little while. Exact price will be determined by the companies you go through, but the simplest answer is that renting a car is cheaper. Leasing companies finance a loan for you and charge the price of the car, interest and depreciation.

Of course yes, you will definitely get back the leased amount back after the completion of the time period but the landlord will not pay any interest in the deposited amount, he is liable to pay only the Principal amount.

How to Calculate a Lease Buyout in 4 Easy Steps

1. Find your car’s residual value. “Residual value” is how much your vehicle was estimated to be worth at the end of the lease.
2. Figure out your car’s actual value.
3. Figure out which value is higher.
4. Add sales tax, license, and registration fees.