What does a triple-net lease require the tenant to pay?

A triple-net lease requires the tenant to pay a prorated portion of all operating expenses in addition to their base rent. This type of lease typically places the financial responsibility for property taxes, insurance, and maintenance on the tenant, making it a popular choice in commercial real estate.

The structure of a triple-net lease allows landlords to expect a more predictable income stream, as tenants cover these expenses directly. This not only means tenants are responsible for the ongoing costs associated with the property but also gives them a vested interest in the property's maintenance and management.

Understanding the nuances of a triple-net lease is crucial for potential investors or tenants in commercial real estate, as it directly affects the overall cost and financial planning involved in occupying a space.