## What does PSF NNN mean?

Commercial spaces may be advertised as “\$12/psf NNN” meaning \$12 per square foot is the base rent and the NNN expenses will be in addition to that. CAM, or common area maintenance, is one of the three NNN Expenses that commercial tenants pay for as additional rent.

## How does NNN calculate rent?

Example of Calculating Monthly Rent in a NNN Lease The estimated operating expenses (aka NNN) are \$10 per square foot per year. The total yearly rent you would pay equals \$40 sf per year. So if you are leasing 3,000 sf then your yearly rent would be \$120,000 or \$10,000 per month.

What does rent plus NNN mean?

triple net lease
A triple net lease (triple-net or NNN) is a lease agreement on a property whereby the tenant or lessee promises to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance. These expenses are in addition to the cost of rent and utilities.

### How do you calculate NNN per square foot?

To determine the triple net lease amount for each renter, add those monthly expenses and the monthly rental per square foot charges and multiply it by the number of square feet a renter is leasing. That is the monthly triple net lease amount.

### Why would you want a triple net lease?

The most obvious benefit of using a triple net lease for a tenant is a lower price point for the base lease. Since the tenant is absorbing at least some of the taxes, insurance, and maintenance expenses, a triple net lease features a lower monthly rent than a gross lease agreement.

What does \$20.00 SF yr mean?

In the commercial leasing industry, \$/SF/year or \$/SF/yr means the rent per square foot per year. Let’s say you receive a quote of \$20/SF/year for a 1,000 square foot space. This would be calculated as \$20 x 1000 square feet = \$20,000 total (this is the cost for the total year).

#### Can you negotiate a triple net lease?

Absolutely not! There are many areas where a tenant can negotiate a NNN lease to make it more favorable. If the tenant is taking on all responsibility and risk of the landlord’s overhead, then the tenant may be able to negotiate a more favorable base rental amount.

#### Is a NNN lease good?

NNN leases are considered to be one of the most secure investment opportunities. This is because, similar to bonds, single-tenant net-leased properties provide steady and predictable returns over time.

Who pays insurance on triple net lease?

In a triple net lease , the tenant pays for building maintenance, property insurance, and property tax in addition to monthly rent.

## What does \$5.00 SF yr mean?

In the commercial leasing industry, \$/SF/year or \$/SF/yr means the rent per square foot per year. This would be calculated as \$20 x 1000 square feet = \$20,000 total (this is the cost for the total year). Now, to get your monthly cost, divide by 12.

## How much does it cost to lease a NNN space?

The estimated operating expenses (aka NNN) are \$10 per square foot per year. The total yearly rent you would pay equals \$40 sf per year. So if you are leasing 3,000 sf then your yearly rent would be \$120,000 or \$10,000 per month. Have Questions About NNN Leases?

What does PSF mean on a commercial lease?

In simple terms, PSF tells you how much rent you’ll pay for each square foot of leased space per year. So, a 1,000-square-foot office space at \$20 PSF would lease for a total of \$20,000 per year. However, in most situations, commercial rent is still paid monthly, so divide this figure by 12 to determine your monthly rent.

### What does NNN mean when renting commercial real estate?

What Does NNN Mean When Renting Commercial Real Estate? When renting commercial real estate whether it be office space, retail space, or warehouse space most owners will use a triple net lease (seen as NNN).

### What is a a net lease?

A net lease, also known as an “nnn lease,” can be significantly more expensive than the PSF figure suggests. Most net leases are technically “triple net” leases, which means the tenant is required to pay property taxes, building insurance, and most maintenance items on top of their base rent.