NNN (Triple Net Lease)
NNN, or triple net, is a lease structure in which the tenant pays base rent plus its share of the three 'nets': property taxes, building insurance, and common area maintenance. The tenant absorbs most variable occupancy cost.
Why NNN Matters in a Laundromat Sale
A low base rent under a triple-net lease can carry a total occupancy cost well above a higher gross rent. For underwriting, only the all-in figure matters, and it should be built from actual reconciliations rather than from the estimate on a listing sheet. A buyer comparing two stores on base rent alone is comparing the wrong number.
Example
Store A: $12 per square foot gross. Store B: $9 per square foot NNN plus $5.50 in taxes, insurance, and CAM. Store B is the more expensive location at $14.50 all-in, despite appearing cheaper in the listing.
What to Check
- Build the all-in occupancy number: base rent plus taxes, insurance, and CAM.
- Ask what happens when property taxes are reassessed after a sale of the building.
- Compare stores on all-in cost per square foot, never on base rent.
Where This Comes Up
- Laundromat Lease Review: 40 Clauses That Change the Price
- CAM (Common Area Maintenance)
- Valuing a Laundromat With Real Estate: Split the Business From the Building
- Laundromat Valuation: How Stores Are Priced and Why
Related Terms
- CAM (Common Area Maintenance) — CAM, or common area maintenance
- Lease Assignment — A lease assignment transfers a tenant's rights and obligations under an existing lease to a new tenant
- Cap Rate — Cap rate
- Option Period (Lease) — An option period is an additional lease term a tenant may elect to take after the base term expires
See the full laundromat glossary for all 78 terms.
The Next Step
This page is general information about laundromat transactions, not legal, tax, or investment advice, and not a guarantee of sale price, timing, or financing approval. Verify current rules with your own CPA, attorney, lender, and the relevant state or municipal agency before acting.