Triple Net Lease Definition

A triple net lease, sometimes called a net-net-net or an NNN, is an agreement where the lessee agrees to pay a net rent and a series of other fees for the right to use a piece of real estate for an extended period of time. In addition to a monthly rental fee, the lessee agrees to pay all taxes, insurance, and costs associated with repairs, replacements and maintenance of the property.

Many large national retail chains participate in triple net lease agreements in order to avoid making large capital investments. These companies prefer to keep funds liquid for other investments. A triple net lease is attractive to many real estate investors and developers. One reason is the sharing of financial responsibility. Once the initial capital is invested, owners can reap the benefits of rental fees and the lack of maintenance fees, while still reaping tax benefits that come with ownership.

At TM 1031 Exchange we specialize in helping our clients find real estate arrangements with a variety of different financial structures. The bottom line is we help you find real estate that produces the highest possible return on your investment for the least risk. Most triple net leases are for a single tenant, and they generally involve long-term commitments.

Many investors take part in triple net leases as part of their 1031 exchanges. If you cash out of one investment, and you're looking for a new opportunity, a triple net lease may be right for you. Let us help you find a property for increased profits, added stability, and ease of management today. Check out our website, www.tm1031exchange.com for a listing of triple net lease opportunities today.