leasing
triple net lease
A triple net lease is a commercial lease in which the tenant pays base rent plus the property's three main operating costs: property taxes, insurance, and maintenance. Because the tenant carries nearly all expenses, the landlord receives a predictable net income. Triple net leases are common for freestanding retail, restaurants, and single-tenant commercial buildings and are typically long-term.
- Exam tip
- Net leases shift expenses to the tenant; gross leases have the landlord pay expenses. In a triple net lease, the tenant pays taxes, insurance, and maintenance.
- Example
- A pharmacy pays $20,000 per month in base rent and also pays the building's $60,000 annual taxes, its insurance, and all repairs.
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Last verified: 2026-10-23