NNN Lease (Triple Net Lease) Explained for Commercial Tenants
An NNN lease — also known as a triple net lease — is a commercial lease structure where tenants pay base rent plus three categories of property expenses: taxes, insurance, and common area maintenance.
While NNN leases are common in commercial real estate, many tenants underestimate how CAM, tax, and insurance charges are calculated — and where overcharges can occur.
For a broader breakdown of structure and terminology, see our NNN lease overview.
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What Does NNN Mean?
NNN stands for “triple net.” In a triple net lease, tenants pay three categories of costs in addition to base rent:
- Property Taxes
- Property Insurance
- Common Area Maintenance (CAM)
These expenses are typically estimated monthly and reconciled annually through aCAM reconciliationprocess.
For a clearer comparison of how CAM differs from full NNN structures, see our CAM vs NNN guide.
How NNN Leases Impact Commercial Tenants
In NNN leases, operating cost risk shifts to the tenant. If expenses increase, tenants absorb the increase.
Common issues include allocation errors, administrative markups, inclusion of non-allowable expenses, and vague lease language.
Many of these problems are discovered during reviews ofCAM reconciliation errors.
Why Reviewing Your NNN Lease Matters
Even small allocation errors in an NNN lease can cost tenants thousands annually.
Because CAM and other operating costs recur every year, unnoticed errors compound over time. Most leases also includeaudit window deadlinesthat limit how long tenants have to dispute incorrect charges.
Review Your NNN Lease Before Charges Compound
A tenant-focused lease review can identify CAM allocation issues, expense caps, and reconciliation errors before audit windows close.
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