Triple Net (NNN) Lease Calculator
Lease Obligation Summary
Annual Base Rent Total:
$0.00
Annual NNN Total (CAM + Tax + Ins):
$0.00
Total Annual Cost:
$0.00
Monthly Base Rent:
$0.00
Monthly NNN Expenses:
$0.00
TOTAL Monthly Payment:
$0.00
How to Calculate NNN Lease Rates
A Triple Net Lease (NNN) is a standard commercial real estate agreement where the tenant is responsible for paying the base rent plus the three "nets": property taxes, building insurance, and common area maintenance (CAM). Calculating your actual monthly obligation requires separating the base rate from these variable operating expenses.
The Formula:
Total Monthly Rent = ((Base Rent per SF + NNN Expenses per SF) × Total Square Footage) / 12
Total Monthly Rent = ((Base Rent per SF + NNN Expenses per SF) × Total Square Footage) / 12
Understanding the Components
- Base Rent: The fixed amount paid to the landlord for the use of the space, usually quoted as an annual price per square foot.
- CAM (Common Area Maintenance): Fees for maintaining shared areas like parking lots, lobbies, landscaping, and security.
- Property Taxes: The pro-rata share of the building's property tax bill.
- Insurance: The pro-rata share of the building's property insurance policy.
Real World Example
Imagine you are leasing a 2,500 square foot retail space.
- The landlord quotes a Base Rent of $20.00 per sq ft.
- The estimated NNN fees are $6.00 per sq ft (comprised of Taxes, Insurance, and CAM).
Step 1: Calculate Total Rate per Square Foot
$20.00 (Base) + $6.00 (NNN) = $26.00 per sq ft per year.
Step 2: Calculate Annual Total
$26.00 × 2,500 sq ft = $65,000 per year.
Step 3: Calculate Monthly Payment
$65,000 / 12 months = $5,416.67 per month.
Why NNN Rates Fluctuate
Unlike a Gross Lease where the rent is flat, the "Net" portion of an NNN lease can change year over year. Since the tenant pays the actual costs of operating the building, if property taxes rise or snow removal costs increase (CAM), your monthly payment will increase accordingly during the annual reconciliation period.