Triple Net, Double Net, and Gross: a Financier's Roadmap To Commercial Lease Types In industrial real estate, lease arrangements are far more than just paperwork-they're effective tools that can transform a good financial investment into a fantastic one. On the other hand, a badly built lease can turn an appealing residential or commercial property into a financial problem. While area remains vital, knowledgeable investors know that lease structure frequently identifies the long-term success of their financial investments. Understanding Lease Types Commercial leasing provides a series of alternatives, each designed to meet the particular needs of property managers and renters. While many lease types exist, typically tailored to each seller, many leases fall into three significant classifications. The 3 basic structures of retail leases are: - Triple net (NNN). - Double web (NN). - and Gross rents Institutional financiers, equipped with a deep understanding of the fundamental commercial lease structures, can wield these documents as more than simply administrative tools. Every year, billions in property value modification hands not due to market conditions however since of lease arrangements. Understanding these structures is vital for survival in today's competitive market, highlighting the value for investors to comprehend their financial effect. This guide to retail leasing types will break down the elements of each major lease type, explore untraditional lease types, balance the strengths and weaknesses of each lease type, and describe why this is valuable info for financiers like you. Examining the 3 Basic Retail Lease Types 1. Triple Net Lease (NNN) In a triple net lease, occupants spend for the base lease plus 3 additional expenses.