tax and insurance - Posted by John

Posted by ray@lcorn on August 12, 2003 at 17:41:22:


What you’re referring to is a double net lease, also referred to as a NN lease. In the case of a single tenant building this is very much the norm.

In fact, most single tenant deals are NNN leases, meaning the tenant is responsible for the maintenance expenses in addition to taxes and insurance.


p.s. I don’t know the owner’s reason for selling… if it is because he needs the cash for anything other than expansion of the core business, then tenant credit quality, hence the value of the income stream, could be an issue.

tax and insurance - Posted by John

Posted by John on August 12, 2003 at 12:41:34:

I am looking at my first commercial property for about 50 cents on the dollar. Its a single tenant building about 2000 square feet. Can i make the tenant responible for paying the taxes and insurance? What is the norm? I am buying it from the owner and renting it back, so he is paying those now and wants to stay.