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The Bottom Line – Commercial Real Estate Resources

Found 1 blog entry about The Bottom Line – Commercial Real Estate Resources.

Unlike a typical home or apartment lease, many commercial leases are described as being Triple-Net or NNN. Unlike the gross or full-service lease, we often see in a residential situation, NNN leases transparently allocate three major real estate costs to the buyer. These include 1) real estate taxes, 2) Common Area Maintenance (or CAM) and 3) Property Insurance. Collectively, these costs are sometimes referred to as Operating Expenses or “Opex.” In a NNN lease the landlord typically charges a Base Rent. This is quoted as $ per square foot. That is the annual cost of the space, so a 1000sf space at $25/sf would rent for 1000 x $25 = $25,000 per year or $2,803 per month.

In a NNN scenario, the landlord would also charge the tenant for the anticipated CAM

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