- NEW!
by ChristianDecker on April 14th, 2009
NNN means "triple net lease" which requires you, the tenant, to pay the property tax, the insurance, the maintenance and the utilities for the property.
If your location is similar to where I am (NYC), the $1.85 would mean that you are paying $1.85 per square foot per year on your lease. The 2.5% would mean that this rate goes up 2.5% each year.
On a 5000sqf site, you would be paying $9250/year, which would work out to be $770.83/month (for the first year at least). You would also be in charge of paying the utility bills for your space as well as the property tax and any maintenance.
I'm not 100% positive, but I think that on a NNN lease, the building owner is only responsible for the upkeep of the shell of the building, ie. make sure the roof doesn't leak, etc. You as the tenant would be responsible for any upkeep inside the space (leaking faucets, clogged toilet, etc).
I would confirm this with your real estate broker though as conditions certainly change from market to market.
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You're reading I'm looking to lease office space I was told $1.85 NNN plus 2.5% increase. What does this mean
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