TM 1031 Exchange
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Successful investing starts with knowledge. Having a thorough understanding of terms and available options is key to securing the best properties and arrangements for your particular situation. We at TM 1031 Exchange can help you to gain both this valuable knowledge and find the property you desire for your investment portfolio.

Often, we field questions from investors interested in learning the difference between a double net (NN) lease and a triple net (NNN) lease. Basically, the difference lies in what the tenant is required to pay. In an NN lease, the tenant is responsible for all expenses associated with the property, with the exception of agreed to carve outs such as structural repairs. The owner/lessor maintains responsibility for structural repairs in an NN lease agreement.

An NNN lease is a bit different. The NNN lease holds the tenant responsible for all property-related expenses, including those for structural repairs. Frequently investors and brokers will confuse NN and NNN leases. Because this potential for variation exists, it is wise to review lease agreements early on in negotiations.

Commercial leasing differs drastically from residential leasing. Commercial leasing involves dealing mostly with corporations, rather than individuals. Furthermore, there are agreements possible in the realm of commercial leasing that are virtually unheard of in residential agreements. For example, one type of commercial lease, called a bond lease, requires the tenant to pay on the lease regardless of what happens. If the property burns down, collapses, or is otherwise struck by disaster, the tenant is still required to pay on the lease. To learn more about NNN and NN leases, please call us at TM 1031 Exchange at 1-877-4TM-1031 (toll-free) or contact us via e-mail info@tm1031exchange.com

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