Triple Net Leases in Industrial Real Estate
Triple net leases, commonly abbreviated as NNN leases, are a standard industrial real estate leasing structure in which warehouse occupants assume responsibility for three core operating expenses beyond base rent: property taxes, building insurance and maintenance. The NNN structure allows warehouse landlords to reduce day-to-day operational involvement and overhead expenses, while tenants often benefit from lower base rental rates and greater autonomy over property management decisions.
How long do triple net leases generally run?
In industrial real estate, triple net leases span a wide range of lease terms, and lease length is typically independent of lease structure. Lease length reflects a combination of business strategy, market conditions and the characteristics of a warehouse or distribution facility. Depending on use and customization, terms may range from three to five years to longer commitments, often with renewal or expansion options.
How are costs shared between landlord and tenant?
A triple net lease shifts significant operating cost responsibility from property owners to tenants. Rather than the landlord covering property taxes, building insurance and maintenance and embedding those costs in a higher rental rate, the tenant manages these expenses separately. As a result, the base rent in a triple net lease often sits lower than what would be charged under a gross lease structure, though tenants must budget for variable operating costs.
What does “Common Area Maintenance” mean?
Common Area Maintenance, usually abbreviated as CAM, is another component of total NNN occupancy expenses and covers shared facility costs such as parking area maintenance and exterior lighting. Under a triple net lease, the distinction between tenant and landlord financial responsibilities is clearly defined in the lease agreement.
How can I find industrial warehouse space near me?
Search available industrial properties by location, size and facility type to identify spaces that match your specific requirements. You can also explore Link Logistics’ portfolio of warehouses and distribution facilities across major U.S. markets including Los Angeles, the Inland Empire, Chicago, Dallas-Fort Worth, New Jersey, Atlanta and South Florida.
