A lease agreement that designates the tenant (the lessee) as responsible for most or all of the landlord expenses is a net lease. Additional terms used can be NN, NNN, triple net or absolute net lease. The NN, NNN, net lease, triple net, absolute net lease is used extensively in commercial real estate and almost all of the time for triple net retail. You’ll also see it most of the time for industrial properties and single tenant office. Multitenant office can be full service gross or modified gross. The NNN, net lease, triple net, absolute net lease is by far and away the most popular for landlords, especially absentee landlords because there are few if any day to day management responsibilities for the landlord. It’s also the most desired lease type for those looking for a 1031 exchange (upleg) replacement property.
