Contracts

A Mississippi commercial lease contains a 'triple-net' (NNN) provision. This means the tenant pays base rent plus:

AThree months' security deposit
BTheir proportionate share of real estate taxes, building insurance, and common area maintenance (CAM) expenses✓ Correct
CUtilities only beyond base rent
DA management fee to the landlord

Explanation

In a triple-net (NNN) lease, the tenant pays base rent plus three additional 'nets': real property taxes, building insurance, and maintenance/CAM expenses. The landlord's net income is therefore more predictable since operating expenses are passed through to the tenant.

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