NNN Leases Decoded: Follow the 3 Nets

In a triple-net, or NNN, lease, the tenant generally pays three major property expenses in addition to base rent: property taxes, insurance, and common area maintenance (CAM). Taxes may be paid directly or reimbursed to the landlord. Insurance typically involves reimbursing the building policy, while CAM covers upkeep of shared areas and the property. Responsibilities for the roof and structure can vary significantly—especially under absolute NNN terms—so never rely on assumptions. Always read the lease carefully and consult qualified legal and real estate professionals. Educational content only. For Frisco, Texas investors and business owners, understanding these pass-through costs is an essential step before evaluating a commercial lease.

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