Types of net leases Use of a triple net lease, where the tenant or lessee is responsible for paying property taxes as well as the base rent. Double- and triple-net leases are more common forms of net leases. A triple net lease (Net-Net-Net or NNN) is a lease agreement on a property and pay the resulting mortgage with the lessee's monthly owed rent. There is usually a small amount left over as monthly profit for the investor (positive cash flow), but the greater investment payoff comes from building equity in the property using the lessee's rent money. The resulting property is then sold after a period of equity-building, usually five years - the typical commercial mortgage term. This form is frequently used for freestanding buildings, such as outparcel developments or single-tenant "big box" sites..
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Houston Business Journal - Houston is second only to Los Angeles in the number of environment-friendly commercial buildings built nationwide, according to a report released last month by the Burnham-Moores Center for Real Estate at the University of San Diego. The report was ... Read more...
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