How much are nnn costs

Reviews on Google. Reviews on Linkedin. Reviews on Yelp. Follow Us. Facebook Pinterest Rss Twitter. This is a basic overview of each of these types:. These charges are lumped together to provide one estimated rate for that year.

After year end the actual expenses are reconciled and tenants are either billed for or credited the difference between estimated and actual expenses for the year. This type of lease rate is advertised as:. In retail properties such as shopping centers, water can sometimes be included in CAM, but typically tenants pay gas and electric directly to the providers. The intent of a triple net lease is that the base rent provides the Landlord with a net return over and above all property taxes, property insurance, and common area maintenance for the property.

Therefore, the lease rate includes base rent, property taxes, property insurance, common area maintenance costs, and typically utilities. This includes taxes, insurance, and common area maintenance out of the rents received from tenants and could also include the utilities and janitorial services. You are responsible for paying your own property insurance and taxes on a gross lease.

So which type of lease agreement is most beneficial to you, the tenant? Well this is up to the individual, and there are pluses to both. Usually the monthly rent on an NNN lease is lower than a gross lease, but with an NNN lease you has a higher level of responsibility for the building itself.

For example, this winter, the cost of snow removal is going to be much higher than in previous years and would not be passed on to you. The landlord assumes all responsibility for the building and costs associated with it, allowing you to concentrate on growing your business.

The most important rule of commercial leases is for tenants to read their leases carefully and clarify with the landlord exactly what expenses they are responsible for. Search for commercial real estate propert y in Cedar Rapids and the metro area. Want to learn more? Read our blog on CAM charges and the commercial real estate lease.