The triple net (NNN) in a commercial real estate lease stands for Net, Net, Net which are the taxes, property insurance, and common area maintenance charges that Tenants or Lessees pay for in addition to their base rent.
For example if you see a commercial space for lease quoted as $14 NNN. This means that in addition to the $14 sf yearly rate the Tenant is also responsible for paying the NNN (taxes, insurance, and maintenance fees). In this example let’s assume the taxes are $7 sf per year, the property insurance is $0.40 per year and the CAM is $3.00 sf per year.
Based on those numbers the total yearly rent would be $24.40 sf per year. If you are leasing 4,000 sf your yearly and monthly rent would be $97,600 and $8,133.33.
Keep in mind that NNN are variable and can change from year to year. Taxes are the main reason for increases or decreases however the other components could possibly change also. Also you will find that office, retail, and warehouse spaces are typically quoted as NNN leases, especially in Austin, Tx.
If you have any questions about the definition of NNN or would like some help with your Austin office space search feel free to call 512-861-0525