What is a Triple Net (NNN) Lease?
A Triple Net lease (written as NNN) is the most common commercial real estate structure in the United States, Canada, and Australia. Unlike a gross lease — where the landlord covers all operating costs — an NNN lease passes three specific cost categories directly to the tenant:
- Net 1 — Property Taxes: The tenant's pro-rata share of the annual property tax bill for the building.
- Net 2 — Building Insurance: A portion of the landlord's hazard and liability insurance premiums.
- Net 3 — Common Area Maintenance (CAM): Shared costs including parking lot repairs, landscaping, exterior lighting, and building management fees.
Because the tenant absorbs operating cost fluctuations, base rents on NNN leases are typically 10–25% lower than equivalent gross leases. This makes NNN structures attractive for established businesses that want budget predictability and are comfortable managing operating risk.
How to Calculate Your NNN Monthly Payment
The formula is straightforward:
- Annual Base Rent = Base Rent per Sq Ft × Total Area (Sq Ft)
- Total Annual NNN = Property Taxes + Insurance + CAM
- Total Annual Cost = Annual Base Rent + Total Annual NNN
- Monthly Payment = Total Annual Cost ÷ 12
For example: a 2,500 sq ft space at $20/sq ft base rent, with $5,000 taxes, $2,000 insurance, and $3,000 CAM gives an annual total of $60,000 — or $5,000/month.
NNN Lease Calculator for Australia & Canada
Our tool supports square meters (Australia, UK) alongside square feet (North America), and displays costs in AUD, CAD, USD, or GBP. Simply toggle the unit and currency at the top of the form — all calculations update instantly.