What is triple net in relation to a commercial building lease?

A triple net lease (NNN) is a type of commercial real estate lease where the tenant is responsible for paying not only the base rent but also three additional costs: property taxes, insurance, and maintenance expenses. This arrangement places a greater financial burden on the tenant, as they must cover these operating costs in addition to their rent. Triple net leases are often favored by landlords because they provide a more predictable income stream and reduce their management responsibilities. Typically, these leases are common in retail and industrial properties.