NNN Lease (Triple Net)

A triple-net (NNN) lease passes the three "nets" — property taxes, insurance, and maintenance/CAM — through to the tenant, so the landlord receives a relatively clean rent stream. It's common in single-tenant industrial, retail, and IOS.

Why it matters: brokers sell NNN as "zero landlord responsibility," but it rarely means literally zero. The landlord still typically carries its own insurance, bank/financing fees, any landlord-paid tax (e.g., a reassessment-gap or true-up), and sensible reserves. That gap is exactly why a NNN deal has two NOIs — gross (broker) and true — and why the true cap rate sits below the headline.

In diligence, confirm the reimbursements are real, check for hidden intercompany charges, and understand how year-end true-ups work. UpsideIQ models NNN with landlord-actual expenses and broker-vs-true NOI on every deal.