Real‑world examples of triple net lease agreement example clauses and structures

Core examples of triple net lease agreement example language in 2024–2025

Before definitions or theory, it helps to see how lawyers actually draft these documents. The best examples don’t just say “NNN” and walk away—they spell out taxes, insurance, and maintenance in painful detail. Below are several realistic, clause‑level examples of triple net lease agreement example wording you’ll actually recognize in the market.

Example of a single‑tenant retail NNN lease (fast‑food pad site)

Picture a 2,800 sq. ft. quick‑service restaurant on a pad site in front of a shopping center. A national chain signs a 15‑year triple net lease. Here’s a simplified example of how the rent and expenses section might read:

Base Rent. Beginning on the Commencement Date, Tenant shall pay to Landlord annual base rent of \(180,000.00, payable in equal monthly installments of \)15,000.00, in advance, on or before the first day of each calendar month.

Additional Rent – Taxes, Insurance, and Common Area Maintenance. In addition to Base Rent, Tenant shall pay as Additional Rent one hundred percent (100%) of (a) all real property taxes and assessments levied against the Premises, (b) premiums for Landlord’s property and liability insurance attributable to the Premises, and (c) all costs of maintaining, repairing, and operating the Premises, including roof, structure, parking areas, landscaping, snow removal, and utilities.

In this first of our examples of examples of triple net lease agreement example language, the key takeaway is that the tenant is carrying the economic burden of ownership: taxes, insurance, and nearly all operating costs. The landlord is mostly collecting base rent and managing financing.

Example of a multi‑tenant retail triple net structure (strip center)

Now imagine a 40,000 sq. ft. neighborhood strip center with 10 tenants. Most leases are labeled “NNN,” but expenses are allocated by proportionate share.

Tenant’s Proportionate Share. Tenant’s Proportionate Share of Operating Expenses shall be 8.50%, calculated by dividing the rentable area of the Premises (3,400 sq. ft.) by the total rentable area of the Shopping Center (40,000 sq. ft.).

Operating Expenses. Operating Expenses include, without limitation, real property taxes, Landlord’s insurance premiums, Common Area Maintenance ("CAM"), utilities serving Common Areas, management fees not to exceed four percent (4%) of gross revenues, and capital expenditures amortized over their useful life.

In this example of a multi‑tenant triple net lease agreement example, the tenant doesn’t pay 100% of the bills, but they do pay their calculated slice of the property’s operating costs. These examples include caps on management fees and capital amortization to keep landlords honest.

Medical office NNN lease example with specialized build‑out

Medical office deals often run on triple net terms, but the build‑out is more expensive and the maintenance standards are higher. A realistic example of triple net lease agreement example language for a 10‑year medical office lease might be:

Tenant Improvements and Maintenance. Landlord shall deliver the Premises with the Tenant Improvement Work substantially complete per Exhibit B. Thereafter, Tenant shall, at Tenant’s sole cost and expense, maintain, repair, and replace all interior improvements, including plumbing, medical gas lines, and specialized HVAC serving the Premises.

Operating Costs. Tenant shall pay its Proportionate Share of all Operating Costs for the Building on a triple net basis, including real estate taxes, insurance, and maintenance of all Building systems, parking areas, and Common Areas.

This is one of the best examples of how NNN leases shift not just basic expenses but also specialized systems to the tenant. For medical tenants, that can mean significant ongoing costs.

Industrial warehouse triple net lease example with expansion rights

Industrial NNN leases are everywhere in logistics and e‑commerce. Here’s a condensed example of triple net lease agreement example language for a 100,000 sq. ft. warehouse:

Net Lease. This Lease is intended to be a “triple net” lease, such that, except as expressly provided herein, Landlord shall receive the Base Rent net of all costs, expenses, and obligations of every kind relating to the Premises.

Tenant’s Obligations. Tenant shall be responsible for all real property taxes, assessments, utilities, insurance premiums, repairs, maintenance, and replacements with respect to the Premises, including the roof, foundation, and structural components, except that Landlord shall be responsible for capital replacements of structural elements, which shall be reimbursed by Tenant through amortized Operating Expenses.

Industrial investors like this kind of example of NNN lease language because it makes cash flow more predictable. Tenants, meanwhile, push for carve‑outs on structural replacements and roof warranties.

Office NNN lease example in a suburban office park

Suburban office parks often use modified NNN structures. An example of triple net lease agreement example clause set might look like this:

Base Year and Expense Escalations. Tenant shall pay its Proportionate Share of Operating Expenses for each Lease Year in excess of the Operating Expenses incurred in the Base Year (calendar year 2025). Operating Expenses include all costs of operating and maintaining the Project, including taxes, insurance, and CAM.

Exclusions. Operating Expenses shall not include Landlord’s income taxes, debt service, leasing commissions, or capital expenditures except those that reduce Operating Expenses, which shall be amortized over their useful life.

While this is still marketed as a triple net deal, it’s really a hybrid: the tenant pays increases over a base year. These real examples show why reading the definitions section matters more than whatever the broker calls the lease.

Ground lease NNN example for a build‑to‑suit retail site

Ground leases are often pure NNN: the tenant builds and owns the improvements during the term and pays all carrying costs. Here’s an example of triple net lease agreement example language you’ll see in ground lease deals:

Net Ground Lease. Tenant acknowledges that this is a fully net ground lease. Tenant shall pay all Impositions, including real property taxes, assessments, and charges of every kind levied against the Land, the Improvements, or any interest therein, together with all insurance premiums, utilities, and costs of maintenance and repair.

Ownership of Improvements. All buildings and improvements constructed by Tenant shall be owned by Tenant during the Term and shall become the property of Landlord upon expiration or earlier termination of this Lease, without payment by Landlord.

If you’re comparing examples of examples of triple net lease agreement example structures, ground leases are the cleanest illustration of a landlord receiving rent while the tenant carries nearly everything else.

Sale‑leaseback NNN example with corporate tenant

In sale‑leaseback transactions, a company sells its real estate to an investor and simultaneously signs a long‑term NNN lease. A typical example of triple net lease agreement example language here might be:

Absolute Net Lease. This Lease is intended to be an “absolute net” lease, and Tenant shall be responsible for all costs and expenses relating to the Premises, including, without limitation, taxes, insurance, utilities, maintenance, repairs, replacements, and capital expenditures, without offset or deduction.

Financial Reporting. Tenant shall provide Landlord with annual audited financial statements prepared in accordance with GAAP within one hundred twenty (120) days after the end of each fiscal year.

These examples include tighter financial reporting because the investor is effectively betting on the tenant’s long‑term credit instead of the property’s re‑leasing prospects.

Key patterns across the best examples of NNN lease clauses

When you line up these examples of examples of triple net lease agreement example language, some patterns jump out:

• The phrase “triple net,” “net lease,” or “absolute net” almost always appears in the rent or operating expenses section.
• Taxes, insurance, and maintenance are spelled out separately, often with lists of what is and is not included.
• Multi‑tenant properties use a “Proportionate Share” formula based on rentable square footage.
• Caps, exclusions, and amortization schedules are where the real negotiation happens.

If you’re drafting or reviewing your own document, the best examples to follow are those that:

• Define Operating Expenses in detail.
• Clarify structural vs. non‑structural responsibilities.
• Address capital expenditures explicitly.
• Explain how reconciliations and audits work.

For a deeper primer on commercial leasing concepts, the U.S. Small Business Administration has a helpful overview of commercial leases and negotiation points at sba.gov (good background reading before you sign anything).

2024–2025 trends shaping real examples of triple net lease agreement example structures

NNN leases in 2024–2025 are being shaped by inflation, higher interest rates, and operating cost volatility.

Stronger expense definitions. After several years of rapidly rising insurance and tax bills, landlords are tightening Operating Expense language, and tenants are pushing back with:

• Caps on controllable operating expenses.
• Carve‑outs for major capital replacements.
• Audit rights to review landlord’s expense records.

Higher annual rent bumps. Many real examples of triple net lease agreement example forms now show 3%–4% annual escalations, instead of the 2% that was common a decade ago. Some institutional leases are indexed to CPI with floors and caps.

Sustainability and ESG clauses. Larger tenants, especially public companies, are negotiating:

• Energy efficiency standards.
• Green building certifications.
• Data sharing on utility usage.

The Urban Land Institute and other research groups have documented how ESG is increasingly embedded into commercial leases, including NNN structures. You can find broader commercial real estate trend data at harvard.edu’s Joint Center for Housing Studies and related research centers.

Insurance volatility. In high‑risk regions (coastal, wildfire), real examples of triple net lease agreement example documents now often:

• Spell out wind, flood, or earthquake coverage separately.
• Allocate deductibles between landlord and tenant.
• Allow landlords to adjust required coverage levels if lenders demand it.

The National Association of Insurance Commissioners at naic.org offers background on property insurance trends that indirectly affect NNN lease costs.

Practical tips when using these examples of examples of triple net lease agreement example clauses

If you’re a tenant, landlord, or broker using these examples as a template, a few practical points:

1. Watch the definition of Operating Expenses.

Two leases can both be called “triple net” and yet allocate costs very differently. When reviewing examples of triple net lease agreement example language, look for:

• Whether landlord’s overhead or corporate costs are slipped in.
• Whether capital expenditures are included, and if so, how they’re amortized.
• Whether landlord’s legal fees or marketing costs are excluded.

2. Check who owns which repair obligations.

Real examples include subtle shifts:

• Landlord keeps roof and structure; tenant handles interior.
• Tenant handles everything except “capital structural replacements.”
• Landlord pays for code‑driven upgrades; tenant handles wear and tear.

The label “NNN” doesn’t answer this—only the actual language does.

3. Model the total occupancy cost, not just base rent.

In many examples of triple net lease agreement example deals, base rent looks low compared to gross leases. But once you add:

• Taxes and assessments,
• Insurance premiums,
• CAM and management fees,

the all‑in number can match or exceed a full‑service lease. Ask for historical operating expense statements and budget projections before you sign.

4. Understand local tax and legal rules.

Property tax systems vary widely by state and locality. The IRS also treats real estate income and expenses differently depending on ownership and use. For U.S. federal tax background, the IRS has landlord/tenant resources at irs.gov. For state‑specific issues, check your state revenue or taxation department’s .gov site.

FAQ: examples of triple net lease terms and common questions

Q: Can you give a simple example of triple net lease agreement example rent math?
Yes. Suppose base rent is \(20 per sq. ft. on a 5,000 sq. ft. space, for \)100,000 a year. Operating expenses (taxes, insurance, CAM) run \(8 per sq. ft., or \)40,000. Under a typical NNN lease, your total annual occupancy cost is about $140,000, paid monthly. That’s the kind of simple math you should apply when reviewing real examples of NNN proposals.

Q: Are all “NNN” leases the same?
No. As the examples of examples of triple net lease agreement example clauses above show, some are “absolute net” (tenant pays everything, including capital items), while others carve out structural repairs or cap certain expenses. The marketing label is less important than the fine print.

Q: What are common examples of expenses excluded from Operating Expenses?
Common exclusions in better‑drafted examples include landlord’s income taxes, loan payments, leasing commissions, costs of renovating space for other tenants, and penalties for landlord’s legal violations. Stronger tenant‑friendly examples of triple net lease agreement example language spell these out clearly.

Q: Is a triple net lease always better for the landlord?
Often, but not always. Landlords like predictable net income and reduced operating risk. Tenants can benefit from lower base rent and more control over how the property is run. The best examples are those where both sides understand the trade‑offs and price the deal accordingly.

Q: Where can I see more real examples of commercial lease language?
Many public REITs file material leases with the U.S. Securities and Exchange Commission, and those documents are searchable at sec.gov. While they’re not templates, they’re some of the most detailed real examples you’ll find of triple net lease agreement example clauses in the wild.

Bottom line: if you’re comparing or drafting your own document, use these examples of examples of triple net lease agreement example clauses as a starting point, then adapt the language to your property type, local law, and negotiating leverage. And if anything in the lease isn’t clear, treat that as a red flag and get a qualified real estate attorney to walk through the details before you sign.