Property Management

A 'net-net-net' or triple net (NNN) lease commonly used in Pennsylvania commercial real estate requires the tenant to pay:

ABase rent only
BBase rent plus property taxes, insurance, and maintenance/operating expenses✓ Correct
COnly operating expenses — the landlord pays base rent
DBase rent plus a percentage of gross sales

Explanation

A triple net (NNN) lease requires the tenant to pay base rent plus all three major expense categories: property taxes, insurance, and maintenance (operating expenses). This transfers most ownership costs to the tenant, making NNN leases very popular for Pennsylvania retail and commercial investment properties.

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