Various sorts of commercial leases can be signed in commercial real estate. The triple net lease is one of the more prevalent types of leases. This blog will define a triple net lease and explore its advantages.
What Is A Triple-Net Lease
A triple net lease is a contract between the landlord and the tenant that covers the three “nets” or “N”s of commercial real estate in the United States. The three Ns are as follows:
- Property taxes: to cover the cost of the relevant land and buildings.
- Property insurance: to cover unanticipated repairs.
- Property maintenance entails keeping the land and structures in good condition.
In a triple net lease, the tenant, in addition to paying their rent and utilities, shares the payment for these expenses. The more tenants there are, the more the net costs are spread out. Due to the additional cost of the three Ns, the rent may also be reduced. Meanwhile, the landlord will pay for structural maintenance, such as the roof and the building’s internal plumbing. Remember that this arrangement applies not only to apartment buildings or other residential properties but to commercial properties such as office spaces, retail, and light industrial structures.
Benefits of a Triple Net Lease
One advantage of a triple-net lease is that the landlord’s maintenance responsibility is reduced. With his tasks and expenditures reduced in this manner, he can devote his efforts to other initiatives or opportunities simultaneously. The longer a renter stays, the less work it is for both the tenant and the landlord to find a new tenant.
Furthermore, the longer the contract, the longer both parties can invest in the property and keep it in good condition. It also provides a consistent income for commercial property investors. Also, commercial properties for lease can provide renters with an excellent location for staff and customers. Long-term leases can assist firms in establishing themselves as a company that plans to stay in business.
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook, Twitter, and Pinterest.