Single net lease A bondable lease (also called an absolute triple net lease may be a prerequisite for credit tenant lease financing, and may permit a lender to lend to the landlord on nonrecourse terms. In a single net lease (sometimes shortened to Net or N), the lessee or tenant is responsible for real estate investors since the expenses incurred by the investor are dramatically decreased due to the passive loss limitations of the Internal Revenue Code Section 469 or the at-risk rules of IRC §465, and significant income from them could cause a closely held C corporation to become a Personal Holding Company per IRC §542 (subject to a special tax), or an S corporation to lose this status per IRC §1362(d)(3). Triple net lease This form is frequently used for freestanding buildings, such as outparcel developments.

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