NNN Lease Calculator (Triple Net Rent)
Calculate total rent on a triple net (NNN) commercial lease: base rent plus property taxes, insurance and CAM per square foot or square meter, as annual, monthly and all-in rent per unit of area.
How it works
Annual base rent = base rate × area · NNN charges = (property taxes + insurance + CAM per unit of area) × area · total annual rent = base rent + NNN charges · monthly rent = total ÷ 12
In a triple net (NNN) lease the tenant pays a base rent plus its share of the building’s three “nets”: property taxes, building insurance and common area maintenance (CAM). Landlords quote both figures per square foot (or per square meter) per year, so the real occupancy cost is the sum of the two multiplied by the leased area. NNN charges are estimates that are reconciled at year-end, so budget for the true-up and for annual base-rent escalations.
Worked example
A 2,500 sq ft space at 24.00 base rent plus 3.50 taxes, 1.00 insurance and 4.50 CAM per sq ft per year costs 33.00 all-in. Annual base rent is 60,000 and NNN charges 22,500, for 82,500 a year — 6,875.00 a month, of which 1,875.00 is NNN (27.27% of the total).
Sources: Investopedia — Triple Net Lease (NNN) · U.S. Small Business Administration — Choose your business location (commercial leases)
Frequently asked questions
What does NNN mean in a lease?
Triple net: the tenant pays the three “nets” — property taxes, building insurance and common area maintenance — on top of base rent. Single net (N) covers taxes only and double net (NN) taxes plus insurance.
Are NNN rates quoted per month or per year?
In the US commercial rents and NNN charges are usually quoted per square foot per year. Divide the annual total by 12 for the monthly payment. Some markets quote per month or per square meter.
What is a typical NNN charge?
It varies widely by market and property type; NNN often adds 15%–35% on top of base rent for retail and office space. Ask the landlord for last year’s actual reconciled charges.
Is NNN better than a gross lease?
NNN base rent is lower, but the tenant carries the risk of rising taxes, insurance and maintenance. A gross lease bundles them into one rent, so compare the all-in cost per unit of area.
Related calculators
Educational estimate, not lending, legal, tax or investment advice. Lenders, landlords and appraisers apply their own definitions, fees and underwriting rules — confirm the figures with them or a licensed professional before you sign anything.