Terms

Triple Net

Triple net is a new way of charging tenants more than the monthly rent for a commercial space. Nowadays some commercial real estate contracts include a provision called triple net, meaning that the tenants pay all the costs of running the building or center, including taxes, upkeep, landscaping, maintenance of shared areas, redecoration, remodeling, or anything the landlord cares to do to the building during the lease. Agreeing to pay triple net can add 20 percent or more to the cost of the lease.

Not all leases include triple net provisions. Make sure you understand what you are signing, or you could end up paying much more than you expect.

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