Frequently
Asked Questions

NNN

A triple net lease (triple-net or NNN) is a lease agreement on a property whereby the tenant or lessee promises to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance. These expenses are in addition to the cost of rent and utilities. Triple net leases tend to have lower rents because the tenant assumes ongoing expenses that would otherwise be the responsibility of DDI. However, DDI is responsible for the roof, exterior structure, and parking lot. In contrast, in standard commercial lease agreements, some or all payments are typically the responsibility of the landlord.

NNNs are just one type of commercial property net lease. A single net lease requires tenants to pay property taxes in addition to rent, and a double net lease typically tacks on property insurance.

Full-Service Lease

A full-service lease (also called a gross lease) means the tenant is responsible for paying the base rent. Generally, the landlord handles the additional building expenses, including maintenance fees, insurance, and real estate taxes. However, with some full-service gross leases, some tenants must still pay their proportionate share of operating expenses above their base year.

Modified Gross Lease

A modified gross lease means that the tenant pays base rent, utilities, and a share of common area operating costs based on their square footage.