10/03/2026
What is a Triple Net Lease (NNN)? š¢
A Triple Net Lease is a commercial real estate lease structure where the tenant typically pays three major property expenses in addition to rent:
1. Property Taxes
The tenant is responsible for the property taxes associated with the asset.
2. Insurance
The tenant typically covers the insurance costs related to the property.
3. Maintenance
The tenant is responsible for certain maintenance and operating expenses, depending on the terms of the lease.
Thatās where the three ānetsā come from: taxes, insurance, and maintenance.
For the property owner, this structure can shift a significant portion of operating expenses to the tenant, potentially making income more predictable and reducing day-to-day expense management.
But thereās an important distinction:
NNN does not mean the owner has zero expenses or zero risk.
The exact responsibilities depend on the lease. Some agreements may leave certain capital expenditures, structural repairs, or other costs with the owner.
Thatās why investors should look beyond the headline rent and understand:
ā Who is the tenant?
ā How long is the lease?
ā Are there scheduled rent increases?
ā What expenses does the tenant actually cover?
ā What happens when the lease expires?
At Tule Capital, we invest in U.S. real estate and evaluate opportunities by looking beyond the property itself ā including the market, the asset, the financing, the operating strategy, and the structure of the investment.
Our goal is to help investors build a path toward financial freedom through U.S. real estate investments, without having to manage the properties themselves.
š +1 (512) 880-9405
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Understanding the terms behind the income is just as important as understanding the property itself.
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