Blog / Commercial
What does NNN mean in a commercial lease?
Quick answer. NNN means triple net. The tenant pays base rent plus its share of the property's taxes, insurance and maintenance. A rate quoted as dollars per square foot NNN is the base rent only, before those expenses.
By Michael O'Neal, Broker and REALTOR®, Keller Williams Realty Northeast
Published October 11, 2026
What are the three nets?
Property taxes, property insurance, and common area maintenance. In a triple net lease the tenant reimburses the landlord for its share of all three.
How is rent quoted?
Commercial rent in Houston is usually quoted per square foot per year. Multiply the rate by the square footage and divide by twelve for the monthly base rent, then add the estimated NNN charges.
How is NNN different from a gross lease?
In a gross lease the landlord pays the operating expenses out of the rent. In a triple net lease those costs pass through to the tenant and can change each year.
What should a tenant ask?
Ask for the current NNN estimate per square foot, the history of those charges, what is included in maintenance, and whether increases are capped.
What should a landlord consider?
Clear lease language on what is reimbursable prevents disputes. I help owners set terms that tenants will accept and that protect the property.
Related