Tag Archives: triple net basis

What Does Triple Net and Gross Mean? Part I

05 Mar

One of the most popular questions I receive pertains to the difference between “triple net” and Gross lease rates. Most retail and industrial spaces are leased on a “triple net basis.”    This basically means that the tenant is responsible for payment of real estate taxes and operating expenses. The Landlord essentially gets all of the rent proceeds. Triple net can essentially be broken down into 3 components:  real estate taxes, operating expenses and utilities.   The real estate tax bill associated with a property can be billed by the municipality directly to the tenant or the Landlord will bill the tenant as the property tax bills are issued on a quarterly basis.   The former arrangement would be more common in a single tenancy building since the cost for taxes are not shared.   Continue Reading