One thing that can get confusing pretty quickly in commercial real estate is the way leases are structured. Two properties might both advertise similar rents, but the actual amount the tenant pays and the amount the owner keeps can be very different. Two lease structures I see often in industrial real estate are Triple Net, or NNN, and Double Net, or NN. Understanding the difference is important for both owners and tenants.
In a Triple Net lease, the tenant generally pays the base rent along with their share of property taxes, insurance, and common area or operating expenses. For the owner, this can make the property’s income more predictable because many of the operating costs are being passed through to the tenant. The exact expenses still depend on the lease, so I would never assume every NNN lease works exactly the same way. The actual lease language is what determines who is responsible for what.
A Double Net lease is similar, but the owner typically remains responsible for more of the property’s expenses. Usually the tenant pays taxes and insurance in addition to rent, while the owner takes on certain other costs related to the property. Again, the details can change depending on how the lease was written. This is why just seeing “NN” or “NNN” on a listing does not always give you the full story.
The lease structure can also affect how I look at the value of an investment property. If one owner is responsible for significantly more expenses than another, two properties collecting the same base rent may produce very different net income. Investors are interested in what is left after the property’s expenses are accounted for, not just the rent number at the top of the lease. That makes understanding the lease just as important as understanding the building.
For owners, I think the most important thing is knowing exactly what your lease says and what costs you are actually responsible for. It is easy to focus on the rental rate while overlooking expenses that can have a real impact on the property’s income. If you own an industrial property and are trying to understand how your current lease compares with other leases in the Northern Nevada market, feel free to reach out.
https://leaselens.org/blog/nnn-lease-explained
https://www.coradvisors.net/2026/05/triple-net-lease-explained-nnn-properties-2026.html
Leave a Reply