A triple net lease agreement, also called an NNN lease, is a commercial lease where the tenant pays the property taxes, building insurance, and upkeep in addition to rent. Landlords and investors get steady income with fewer property costs. Tenants often pay a lower base rent and can adapt the space to their business. Create your NNN lease online with the free FormsPal template, or download the PDF.
Last Updated: October 2026. This guide is reviewed and updated regularly. If you notice an error or outdated information, please contact us.
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A triple net lease, also known as an NNN lease, is a lease agreement where the tenant covers the property’s costs. These include commercial property taxes, building insurance, and upkeep. The tenant pays them in addition to rent and utility fees.
Without a triple, double, or single net contract, the landlord is typically responsible for all payments.
Triple net leased assets have become common investment opportunities for investors looking for a consistent stream of income with minimal risk. They have advantages for both renters and owners. Tenants have the flexibility to personalize their space without buying property. Investors can get long-term, secure returns with appreciation.
Consider the following before using your commercial real estate property for a triple net lease investment:
A triple net lease is the opposite of a gross lease. In a gross lease, the landlord pays the property taxes, insurance, and repairs, so the tenant’s annual rent is considerably higher. In an NNN lease, the tenant pays these costs directly, which keeps the base rent lower.
| Lease type | Tenant pays | Landlord pays |
|---|---|---|
| Gross lease | Rent, and sometimes utilities | Property taxes, building insurance, and maintenance |
| Single net lease | Rent and property taxes | Building insurance and maintenance |
| Double net lease | Rent, property taxes, and building insurance | Maintenance |
| Triple net (NNN) lease | Rent, property taxes, building insurance, and maintenance | Sometimes the roof, structure, and common areas |
A gross lease can specify that the occupant is responsible for all utilities.
In real estate, a gross lease is the most common type of lease used by residential landlords. Leasing is paid in advance, and the landlord is responsible for all types of expenses. Other than utilities and mortgage payments, the three main recurring costs associated with purchasing property are building insurance, real estate property taxes, and regular maintenance.
Triple net leases are most often used for freestanding commercial buildings with a single occupant. They can also suit other kinds of properties.
This type of lease usually has an initial term of 10 years or longer, with rent increases built in. A single net or double net lease has a similar setup, but a triple net lease is the most convenient for the landlord. The tenant pays for the following:
A triple net lease fits best when the tenant wants a lower base rent and is ready to handle the property’s running costs. It tends to suit long-term occupants of commercial space, shared properties with low vacancy, and tenants who have worked out the extra charges in advance.
Commercial leases are mostly triple net with the square footage determining the amount of rent. A triple net lease is typically more cost-effective for industrial tenants than the gross rent model. In this case, the landlord deducts all running costs from the annual gross rent.
Good properties with low vacancy rates are appealing to tenants for a triple net lease. The burdens of taxes, insurance, and upkeep are shared by a larger group of fellow tenants. Renters pay a lower prorated share of the continuing fees, and a lower monthly payment, by spreading those expenses out to more tenants. The same applies to their CAM contribution.
To check whether a triple net lease suits your commercial property, estimate the cost per square foot:
The method is pretty straightforward if you’re renting a whole building to one tenant. However, you must include the maintenance of common spaces such as restrooms, hallways, and the building lobby if you have several tenants.
Also work out the yearly cost of cleaning, utilities, and equipment. Divide the total annual expenses by the rentable square feet of the property to get a fairly clear figure per square foot.
Investors and landlords benefit from triple net leases in different ways. Before entering into one, all parties should understand the constraints of this form of a commercial lease. Inflation, property repair expenses, and the number of tenants all affect whether an NNN lease is right for your property.
However, when commercial property prices in the neighborhood rise, landlords who are locked into a long-term lease may lose the ability to raise the rent, which can affect their income in the long run.
An NNN lease is typically cheaper than a standard lease, also called a gross lease. The owner does not have to think about the variable costs of owning the property. During the leasing period, the landlord estimates how much property taxes, insurance, and repairs would cost, and the savings are handed down to the tenant.
Because of this, for the operations, upkeep, and unforeseen fees of the company location, tenants must have a good credit record.
In an NNN lease, the tenant pays for all other fees on top of the rent.
An NNN lease deal is a relatively low-risk transaction for an investor. The occupant is responsible for almost all of the expenses involved with the property, from taxes and maintenance to daily repair costs.
When the underlying assets are leased, owners can use a 1031 tax-deferred exchange to buy in another triple-net-lease property without paying taxes. However, there’s also the possibility that a tenant will default. Investors can suffer losses as they are attempting to fill the vacancy.
An NNN lease is a good agreement to consider, but in the end, it is up to you to determine by weighing all the benefits and risks involved.
The FormsPal triple net lease form is an 11-page PDF with 97 fillable fields. It covers rent, common area maintenance, property tax, security deposit, and signature sections. Create it online and print it, or download the PDF and fill it in by hand.
| Document Name | Triple Net Lease Agreement Form |
| Other Name | NNN Lease Agreement |
| Avg. Time to Fill Out | 16 minutes |
| # of Fillable Fields | 97 |
| Available Formats | Adobe PDF |
The screenshots under each step show the FormsPal Triple Net Lease Agreement template filled with sample entries in blue, so you can see where each answer goes. The names, addresses, dates and amounts are examples only.
Step 1: The parties, reference date, county and state (Sections 1 and 3)
Enter the Reference Date, the Lessor name and the Lessee name in Section 1. Then enter the county and the state where the Premises sit in Section 3.
Step 2: The premises, the Center and the use (Sections 3 and 4)
Write the street address after COMMONLY KNOWN AS, the approximate square feet, and the name of the project or shopping center. In Section 4, write what the Lessee will use the Premises for.
Step 3: Term and occupancy (Section 5)
Enter the length of the term in words and numerals, the Rent Commencement Date and the end date. Tick one box: permission to occupy on signing, or no occupancy until the Rent Commencement Date.
Step 4: Renewal option (Section 5A)
Tick the renewal box that fits. For the first, enter the renewal years and the rent amount for the renewal term. The second leaves the renewal terms to be negotiated.
Step 5: No renewal or month-to-month (Section 5A, page 2)
If no renewal option applies, tick either 'There shall be no renewal term' or the box that continues the lease month-to-month on the same rent after the Term ends.
Step 6: Base Rent (Section 6(b))
Enter the first-year annual Base Rent and the equal monthly installment, each in words and figures. Then tick either no increase or the yearly increase, and enter the increase as words and a percent.
Step 7: Base Rent by year (Section 6(b) table)
If you chose a yearly increase, fill each row with the annual and monthly Base Rent. Start with Year Two and Year Three, and use the blank rows for later years.
Step 8: Common area maintenance charge (Section 6(c))
Enter the Premises square feet, its percent of the Center's total square footage, the first-year CAM charge and the equal monthly installment.
Step 9: Property tax and security deposit (Sections 6(d) and 7)
Enter the first-year Property Tax share and its monthly installment in Section 6(d). Then enter the security deposit amount in Section 7.
Step 10: Damage or destruction blanks (Section 17)
Enter the number of days for repairs and the number of days for written notice after the triggering event. Then enter the number of months at the end of the term that count as 'near end of term'.
Step 11: Lessor notice address (Section 18)
Under LESSOR, enter the notice address and the office, cell and fax numbers and the email address.
Step 12: Lessee notice address (Section 18)
Under LESSEE, enter the notice address and the office, cell and fax numbers and the email address.
Step 13: Holdover rate and guaranty (Sections 26 and 31)
In Section 26, enter the percent of the current monthly Rent charged for holding over. In Section 31, tick either no third party guarantor or the box naming the Guarantor, and write the Guarantor's name.
Step 14: Force majeure and Lessor signature (Sections 32 and 33)
Tick either 'No Force Majeure clause applies' or the Force Majeure clause. Section 32 has no blank. Then enter the witness name and sign the LESSOR block with the Lessor's name and its title.
Step 15: Lessee signature and witness
In the same way, enter the second witness name and sign the LESSEE block with the Lessee's name and its title.
A triple net lease agreement contains standard sections beyond the blanks you fill in. Reading them before signing helps the landlord and the tenant understand what the lease covers, from rent and utilities to repairs and breaches.
The paragraphs above explain the defaults pertaining to the financial aspects of the lease. It is best to read everything thoroughly before signing.
Section 8 discusses additional charges due to “Common Area Maintenance” (CAM), which is charged on a monthly basis.
In a triple net commercial lease, the tenant pays all the utility fees as explained above.
Likewise, payment of real estate taxes shall be shouldered by the tenant.
Section 11 above explains that the tenant must comply with all laws and regulations.
Section 12 details the rules and proper procedure for making repairs and alternations.
For section 13, the amount depends on the value of the property and should be checked with a real estate insurance agent. It would be best for the tenant to only pay for the minimum premium as part of the property’s insurance maintenance.
Section 14 protects both the landlord and tenant from any inconvenience or legal problems caused by either party.
Section 15 protects the landlord from any financial obligations unpaid by the tenant. This gives the landlord the right to take possession of the tenant’s non-exempt property until the overdue balance is paid. The balance may also be taken from the security deposit.
The above section discusses how both parties are not responsible for property destruction caused by “acts of God,” such as typhoons, earthquakes, and the like.
Section 19 explains that the tenant cannot make any legal claims against the landlord for situations that are out of his or her scope.
Sections 20 to 22 detail how the premises may be used.
The above explains what happens if the premises will be labeled “unusable”.
Section 24 lists all situations that will be equivalent to a “breach” in the contract.
Following section 24, section 25 explains how breaches can be remedied.
Sections 27 to 28 explain the remaining guidelines before taking any action. 29, on the other hand, prioritizes the welfare of persons with disabilities who may visit the premises.
Section 30 discusses the legal basis for the enforcement of the triple net lease contract.
Once every blank is filled in, the lease is ready for a final review and signatures. A careful read-through helps the landlord and the tenant catch mistakes before the lease starts.
NNN leases can be tricky and detailed, but these are often the most convenient set up for the landlord and tenant. However, both parties must be aware of the consequences and responsibilities involved in this type of lease. Fortunately, Formspal’s free template discusses everything in detail to eliminate ambiguity in commercial NNN contracts.
FormsPal has other commercial lease templates for different spaces and situations. Pick the one that matches the space you are renting, such as an office, a storage unit, a garage, or an event venue, or start from the general commercial lease agreement.
NNN stands for triple net. The three nets are property taxes, building insurance, and maintenance. In an NNN lease, the tenant pays these costs on top of the rent, which is why the base rent is usually lower than in a gross lease.
The tenant pays for repair costs and upkeep. The roof, structure, and common areas like the parking lot may still be the landlord’s responsibility.
Rent is typically lower than in a standard lease, because the tenant pays the property’s costs separately.
These leases usually have an initial term of 10 years or longer, and some run up to 20 years.
Create the lease online or download the PDF, then follow the 15 steps above. You can also complete the downloaded file in the FormsPal PDF editor.
General information, not legal or tax advice.
