Calculator
Triple Net Lease Calculator
Compare total occupancy costs across NNN, Modified Gross, and Full Service Gross lease structures. Adjust the inputs below to model your specific scenario.
Lease Parameters
Total Cost Comparison Over 5 Years
Triple Net (NNN)
$1,133,870
$18,125/mo in Year 1
Modified Gross
$996,370
$15,833/mo in Year 1
Full Service Gross
$1,035,281
$16,250/mo in Year 1
Year-by-Year Breakdown ($/SF)
| Year | NNN Total/SF | NNN Annual | Mod. Gross/SF | Mod. Gross Annual | Gross/SF | Gross Annual |
|---|---|---|---|---|---|---|
| 1 | $43.50 | $217,500 | $38.00 | $190,000 | $39.00 | $195,000 |
| 2 | $44.40 | $222,000 | $38.90 | $194,500 | $40.17 | $200,850 |
| 3 | $45.33 | $226,635 | $39.83 | $199,135 | $41.38 | $206,875 |
| 4 | $46.28 | $231,409 | $40.78 | $203,909 | $42.62 | $213,082 |
| 5 | $47.27 | $236,326 | $41.77 | $208,826 | $43.89 | $219,474 |
Lease Structure Comparison
| Feature | Triple Net (NNN) | Modified Gross | Full Service Gross |
|---|---|---|---|
| Property Tax | Tenant | Landlord | Included in rent |
| Insurance | Tenant | Landlord | Included in rent |
| CAM | Tenant | Tenant | Included in rent |
| Utilities | Tenant | Varies | Often included |
| Base Rent Level | Lowest | Middle | Highest |
| Expense Risk | Tenant bears risk | Shared | Landlord bears risk |
| Common Property Types | Retail, Industrial | Office | Class A Office |
| Expense Transparency | High | Moderate | Low |
What Is a Triple Net (NNN) Lease?
In a triple net lease, the tenant pays base rent plus three “net” expenses: property taxes, building insurance, and common area maintenance (CAM). The landlord is typically responsible only for structural repairs. NNN leases are the most common structure in commercial real estate, particularly for single-tenant retail and industrial properties. They provide landlords with predictable net income while giving tenants full transparency into operating costs. Source: Visual Lease, MRI Software.
What Is a Modified Gross Lease?
A modified gross lease splits operating expenses between landlord and tenant. Typically the tenant pays base rent plus a portion of expenses (often CAM), while the landlord covers property taxes and insurance. This structure is common in multi-tenant office buildings where shared expenses vary by floor or suite. The exact split is negotiated on a deal-by-deal basis, making careful lease abstraction essential to understand each tenant's obligations.
What Is a Full Service Gross Lease?
In a full service gross lease, the landlord bundles all operating expenses into a single rent figure. The tenant pays one all-inclusive amount covering base rent, property taxes, insurance, CAM, and often utilities. This structure is most common in Class A office buildings. Base rent is higher than NNN to account for the landlord absorbing expense risk. Most gross leases include a “base year” or “expense stop” above which the tenant pays their proportional share of increases.
Why Lease Type Matters for Abstraction
When abstracting a lease, understanding the structure determines which expense fields to extract. NNN leases require detailed tracking of CAM charges, property tax obligations, and insurance requirements. Gross leases need base year analysis and expense stop calculations. Modified gross leases require careful identification of which expenses fall on each party. Getting this wrong can lead to significant financial miscalculations during due diligence or ASC 842 compliance.
Need to extract lease structure from existing leases?
LeaseParse identifies NNN, gross, and modified gross structures automatically and extracts all associated expense terms in under 3 minutes.
See PricingFrequently Asked Questions
What does triple net mean?
Triple net means the tenant pays three "nets" in addition to base rent: property taxes, building insurance, and common area maintenance (CAM). This gives landlords predictable income and tenants transparency into actual operating costs.
Is a NNN lease cheaper than a gross lease?
NNN leases have lower base rent, but total occupancy cost is often similar to gross leases once you add property tax, insurance, and CAM. NNN provides more transparency into actual costs, while gross leases offer simplicity and predictability.
Who is responsible for repairs in a NNN lease?
In a standard NNN lease, the tenant handles most maintenance and repairs including HVAC, plumbing, and interior work. The landlord is typically responsible only for structural elements (roof, foundation, exterior walls), though exact responsibilities vary by lease.
What is a base year in a gross lease?
The base year is the calendar year used as a benchmark for operating expenses. The landlord covers expenses up to the base year amount. In subsequent years, the tenant pays their proportional share of any increases above the base year level.
Can a lease be part NNN and part gross?
Yes — modified gross leases split expenses between landlord and tenant. The exact arrangement is negotiated per lease. One tenant might pay CAM only, while another pays CAM plus insurance. Always check the specific lease terms.