Triple Net (NNN) Lease Calculator
Calculate total commercial tenant occupancy costs under a Triple Net (NNN) lease structure. Model base rent, CAM pass-through fees, real estate taxes, and annual escalations.
Commercial Lease & NNN Expense Inputs
Calculate base rent, CAM pass-throughs, property taxes, insurance, and all-in PSF costs
$15,323
$40.86/SF/yr total$10,688
$28.50/SF/yr base$4,636
$12.36/SF/yr NNN$183,880
Full year occupancy costCommercial Lease Proposal Summary Ready
Export tenant occupancy cost breakdown for commercial lease negotiations
Understanding Commercial Triple Net (NNN) Lease Economics
In commercial real estate, a Triple Net (NNN) lease requires the tenant to pay base rent plus their proportionate share of three core building operating expenses: property taxes, property and casualty insurance, and Common Area Maintenance (CAM). For corporate tenants, retail franchisees, and office occupants, properly estimating NNN expenses is critical because pass-through charges can add 25% to over 40% to your baseline rental obligation.
Key Investment & Valuation Features
Bifurcated Base vs NNN Expense Sizing
Separates fixed landlord base rent from variable operating pass-throughs (taxes, insurance, and CAM repairs).
All-In Rent Per Square Foot (PSF)
Converts total gross annual financial outlays into clear $/RSF/year metrics to benchmark competing commercial spaces.
Management Fee Pass-Through Modeling
Incorporates 3% to 5% landlord property management fees commonly included in institutional commercial leases.
5-Year Cumulative Escalation Forecast
Projects compound rental cost growth based on annual 2% to 4% contractual base rent inflation escalations.
Monthly Cash Outflow Schedule
Breaks down monthly base rent checks versus monthly escrow deposits for property taxes and operating expenses.
Tenant Letter of Intent (LOI) Summary
One-click copy formatted for commercial tenant representation brokers and corporate real estate directors.
Practical Real Estate Scenarios
- ✓Retail Franchisees & Storefront Owners
Calculate true monthly cash burn for shopping center and strip mall retail spaces before signing 10-year leases.
- ✓Medical & Dental Practice Owners
Evaluate total occupancy overhead in medical office buildings with high shared janitorial and utility CAM fees.
- ✓Industrial & Warehouse Operators
Budget insurance and exterior maintenance pass-throughs for logistics distribution centers.
- ✓Commercial Real Estate Brokers
Generate clear side-by-side net vs gross lease comparisons for prospective tenant clients.
Frequently Asked Questions
What is a Triple Net (NNN) lease?
A Triple Net (NNN) lease is a commercial lease agreement where the tenant is responsible for paying all real estate taxes, building insurance, and Common Area Maintenance (CAM) in addition to the base rent.
What expenses are included in CAM fees?
Common Area Maintenance (CAM) typically covers parking lot maintenance, snow removal, landscaping, hallway janitorial cleaning, security services, shared HVAC maintenance, exterior lighting, and property management fees.
How are NNN expenses reconciled at year end?
Throughout the year, tenants pay estimated monthly NNN escrow payments. At the end of the calendar year, the landlord reconciles actual property operating expenses against collected estimates, issuing either a credit refund or an additional invoice (reconciliation billing).
What is the difference between a Gross Lease and a Triple Net Lease?
In a Full-Service Gross lease, the tenant pays a single flat rate, and the landlord covers all taxes, insurance, and maintenance. In an NNN lease, the base rent is lower, but the tenant assumes the financial risk of rising property taxes and operating expenses.
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