A Triple Net Lease, often abbreviated as NNN, is a type of commercial real estate lease agreement where the tenant is responsible for paying a pro-rata share of all three of the major property expenses in addition to their base rent. These three "nets" are:
Property Taxes: The taxes levied by local government authorities on the property.
Property Insurance: The cost of insuring the building against damage or loss.
Common Area Maintenance (CAM): Costs associated with maintaining the property, including repairs, upkeep, utilities for shared spaces, landscaping, etc.
In a NNN lease, the landlord essentially collects a "net" amount of rent, as the tenant covers the variable operating expenses. This shifts a significant portion of the financial risk and responsibility for property upkeep to the tenant, making it attractive for landlords seeking passive income with minimal involvement in day-to-day property management. For tenants, while they bear more cost, they often gain more control over the property's condition and can benefit from long-term leases with predictable base rent increases.
How the Calculator Works
This calculator helps you determine the total annual cost a tenant would incur under a Triple Net Lease. It sums up the base annual rent with the estimated annual costs for property taxes, property insurance, maintenance, and any other miscellaneous NNN expenses. The formula used is straightforward:
Total Annual NNN Cost = Annual Base Rent + Annual Property Taxes + Annual Property Insurance + Annual Maintenance/Repairs + Other Annual NNN Costs
Example Scenario
Let's consider a commercial property leased under a Triple Net agreement:
This means the tenant would be responsible for paying a total of $66,000 annually for this property, encompassing both the base rent and the operational expenses.
Who Uses This Calculator?
Tenants: To accurately budget for the total cost of occupying a commercial space under a NNN lease.
Landlords/Investors: To understand the net income they can expect after the tenant covers all operating expenses, and to market properties effectively by outlining tenant responsibilities.
Real Estate Agents: To provide clear cost breakdowns to potential clients.
function calculateNNN() {
var annualRent = parseFloat(document.getElementById("annualRent").value);
var propertyTaxes = parseFloat(document.getElementById("propertyTaxes").value);
var propertyInsurance = parseFloat(document.getElementById("propertyInsurance").value);
var maintenanceCosts = parseFloat(document.getElementById("maintenanceCosts").value);
var otherNNNCosts = parseFloat(document.getElementById("otherNNNCosts").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = "; // Clear previous results
if (isNaN(annualRent) || isNaN(propertyTaxes) || isNaN(propertyInsurance) || isNaN(maintenanceCosts) || isNaN(otherNNNCosts)) {
resultDiv.innerHTML = 'Please enter valid numbers for all fields.';
resultDiv.style.backgroundColor = '#ffc107'; // Warning yellow
return;
}
if (annualRent < 0 || propertyTaxes < 0 || propertyInsurance < 0 || maintenanceCosts < 0 || otherNNNCosts < 0) {
resultDiv.innerHTML = 'Costs cannot be negative. Please enter positive values.';
resultDiv.style.backgroundColor = '#dc3545'; // Danger red
return;
}
var totalNNNCost = annualRent + propertyTaxes + propertyInsurance + maintenanceCosts + otherNNNCosts;
resultDiv.innerHTML = '$' + totalNNNCost.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) +
'Total Annual Triple Net Lease Cost';
resultDiv.style.backgroundColor = 'var(–success-green)'; // Reset to success green
}