Who Pays for What? The Truth About Triple Net (NNN) Leases

Triple Net leases are common—but few tenants understand what they really mean.

In a typical NNN lease, the tenant pays base rent plus property taxes, insurance, and

maintenance. But these expenses can spike without warning.

One of our clients took over a warehouse in a suburban industrial park. They loved the

space—until a city tax reassessment bumped their share of expenses by 27%

overnight. The lease didn’t cap expenses, so they had no recourse.

What to Ask in a NNN Lease:

Is there a cap on controllable expenses?

What’s included in maintenance?

Are reserves or capital improvements passed through?

Can you audit the expenses?

At CIG, we advocate for clear, capped NNN leases. Because predictability equals

power—and we want tenants making growth decisions, not dealing with cost whiplash.