What is Triple Net Lease (NNN)?
A triple net lease is a commercial lease in which the tenant pays not only base rent but also the three main property costs — property taxes, insurance, and maintenance. It shifts most ownership expenses to the tenant, giving the landlord more predictable net income. NNN leases are common with single-tenant retail and freestanding buildings.
Example: A national pharmacy signs a NNN lease, paying rent plus the building's property taxes, insurance, and upkeep, so the owner's income is largely hands-off.