Property Management

What is a 'net-net-net' (triple net) lease and how is it different from a 'modified gross' lease?

ANNN and modified gross are the same
BNNN requires tenant to pay all operating expenses (taxes, insurance, maintenance); modified gross splits certain expenses between landlord and tenant✓ Correct
CNNN is only for retail; modified gross is for office properties
DNNN requires zero expenses from the landlord; modified gross requires zero from the tenant

Explanation

In a triple net (NNN) lease, the tenant pays base rent plus all three nets (property taxes, building insurance, maintenance). In a modified gross lease, some expenses are included in rent while others are passed through to the tenant — a hybrid between gross and NNN.

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