What Does NNN Mean in Commercial Real Estate? Complete Triple Net Lease Guide for Athens

What Does NNN Mean in Commercial Real Estate? What is NNN for Commercial Lease?

A straightforward explanation of Triple Net Leases for Athens business owners

What does NNN mean in commercial real estate? If you’ve been searching for retail or office space in Athens, you’ve probably seen “NNN” in property listings. NNN stands for Triple Net Lease – one of the most common lease structures in commercial real estate. In this guide, we’ll explain what triple net leases mean for tenants, how NNN costs are calculated, and whether this lease type is right for your Athens business. If you’ve been asking “what is a NNN lease mean?” or “what is the meaning of NNN lease?” – this guide explains everything you need to know about triple net lease structures.

Here’s what you need to know.

What Does NNN Mean?

NNN stands for Triple Net Lease. It’s a lease structure where the tenant pays three additional costs on top of base rent:

Property taxes
Building insurance
Maintenance and repairs

In a Triple Net Lease, you’re responsible for these operating expenses in addition to your monthly rent payment. The triple net lease structure is popular in Athens commercial real estate for retail centers, stand-alone buildings, and office spaces. This NNN lease type is one of the most common structures in commercial real estate, particularly for retail and office properties.

Why Do Landlords Use NNN Leases?

Landlords prefer NNN leases because they transfer the variable costs of property ownership to the tenant. This gives the landlord predictable income without worrying about rising property taxes, insurance premiums, or unexpected repair costs.

For tenants, NNN leases typically mean lower base rent compared to gross leases where the landlord covers these expenses.

How Much Will NNN Costs Add to My Rent?

The lease rate NNN (NNN costs) are typically expressed as a dollar amount per square foot per year.. For example, if you’re leasing 2,000 square feet and the NNN costs are $4.00/SF/year, you’d pay:

$4.00 × 2,000 SF = $8,000/year in NNN costs
$8,000 ÷ 12 months = $667/month

So if your base rent is $2,500/month, your total monthly payment would be $3,167 ($2,500 base rent + $667 NNN).

What Expenses Are Included in NNN?

Typical NNN expenses include:

Property taxes: Your proportionate share of the building’s property tax bill
Building insurance: Property and liability insurance for the building structure
Common area maintenance (CAM): Upkeep of shared spaces like parking lots, landscaping, and exterior maintenance
Roof and structural repairs: Major building repairs

What’s typically NOT included:

Interior build-out or improvements specific to your space
Utilities (these are usually billed separately)
Your business liability insurance (you’ll need your own policy)

NNN vs. Gross Lease: What’s the Difference? (Triple Net Lease Explained)

In a Gross Lease, the landlord pays property taxes, insurance, and maintenance. Your rent is higher, but it’s predictable—one monthly payment covers everything.

In a Triple Net Lease, you pay lower base rent but handle these costs separately. Your monthly payment can vary if property taxes increase or major repairs are needed.

Example:

Gross Lease:
$3,500/month (all-inclusive)

NNN Lease:
$2,500/month base rent + $667/month NNN = $3,167/month total

The NNN lease is slightly cheaper, but you’re responsible for cost increases over time.

Is NNN Good or Bad for Tenants?

It depends on your priorities. Understanding triple net lease pros and cons helps you negotiate better terms in your commercial real estate agreement.

NNN leases can be beneficial if:

You want lower base rent
You prefer control over building maintenance and repairs
You’re comfortable budgeting for variable costs
You’re a long-term tenant who wants to invest in property upkeep

Gross leases might be better if:

You want predictable monthly costs
You don’t want to manage property maintenance
You’re a short-term tenant
You prefer simplicity in budgeting

Questions to Ask About NNN Leases

Before signing an NNN lease, ask your landlord or broker:

What’s the current NNN rate? Get the exact dollar amount per square foot.
What’s included in NNN? Some landlords include utilities; others don’t.
How often do NNN costs increase? Ask for historical data if available.
Are there caps on NNN increases? Some leases cap annual increases.
Who handles repairs? Clarify responsibilities for HVAC, plumbing, electrical, etc.
How are NNN costs calculated? Understand if you’re paying actual costs or a pro-rata share.

NNN Leases in the Athens Market

In Athens and Northeast Georgia, NNN leases are common for:

Retail spaces in shopping centers
Stand-alone retail buildings
Office buildings
Industrial and warehouse properties

If you’re evaluating commercial space in Athens, understanding NNN leases will help you accurately compare properties and negotiate better terms.

Need Help Understanding Your Lease?

Lease structures can be complex, and the details matter. If you’re evaluating commercial space in Athens or have questions about a specific property, we’re here to help.

Want to see current market trends for Athens retail? Click here to check out our latest Athens Retail Market Report.

NAI Elrod Group has been serving Athens and Northeast Georgia for years. We can walk you through lease terms, help you understand costs, and find properties that fit your budget and business needs.

**Are you evaluating commercial properties with NNN leases in Athens?** Understanding lease structures is crucial for making the right decision.

Contact Brian Elrod at 678-859-6110 or brian@naielrod.com to discuss your specific situation and get expert guidance on Athens commercial real estate.

NAI Elrod Group
www.naielrod.com

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