Free Triple Net Lease (NNN) Agreement Template

A triple net lease (NNN) agreement is a commercial lease with a split cost structure. The tenant pays base rent, then covers three property costs on top of it.

Those three costs are property taxes, building insurance, and maintenance. Together they are the nets, and they are what makes the lease triple net.

The landlord keeps ownership and collects a steadier return. Meanwhile, the tenant takes on the running costs and gains far more control over the space.

So the rent figure alone tells you very little here. Always read it beside the estimated net charges.

Each net is a separate obligation, so price them separately before you sign anything.

Property Taxes

The tenant covers the tax bill on the property, or a share of it. In a multi-tenant building, that share usually tracks square footage.

Building Insurance

The tenant pays the premium for the property coverage the landlord requires. Business liability and contents coverage then sit on top of that.

Maintenance

The tenant handles upkeep of the building and grounds. Parking areas, landscaping, and HVAC service often fall here, while larger structural work sometimes stays with the owner.

Commercial leases differ mainly in who absorbs the operating costs, so that is the first thing to pin down.

• Gross lease — the landlord pays operating costs out of a single rent payment.
• Modified gross lease — the two sides split those costs, usually with the landlord keeping taxes or insurance.
• Triple net lease — the tenant carries taxes, insurance, and maintenance separately from base rent.

Base rent under net terms typically looks lower at first glance. However, the real number is base rent plus the nets, and that total is what you should compare between properties.

Ask every landlord to quote both figures. Comparing a gross quote against a net quote is the fastest way to misprice a deal.

Landlords and tenants pick net terms when both sides want predictable roles. The owner wants a hands-off return, while the occupant wants control over how the building runs.

Common situations include:

• Single-tenant retail — a pharmacy or quick-service restaurant in a standalone building.
• Industrial and warehouse space — where the occupant already manages the yard, dock, and equipment.
• Investor-owned property — an owner holding the asset for income rather than daily management.
• Long terms — ten years or more, where the tenant treats the space almost as its own.

Franchise operators meet these terms often, since standalone sites suit the structure well. By contrast, a small business taking a suite inside a managed building rarely signs one.

A strong triple net lease (NNN) agreement spells out who pays what, and when. Cover each item below.

Parties and Premises

Name the landlord and tenant, then describe the property, the unit, and the usable square footage.

Term and Renewal Options

Set the start date, the end date, and any renewal rights the tenant can exercise.

Base Rent and Escalations

State the monthly base rent, the due date, and how the amount rises over time.

The Net Charges

List taxes, insurance, and maintenance separately, then explain how each one is estimated and billed.

Cost Allocation

Explain the tenant’s share in a multi-tenant property, and show how that share is calculated.

Repairs and Capital Items

Draw a clear line between routine upkeep and major structural work.

Insurance Requirements

Set the coverage types and limits each side must carry throughout the term.

Use, Alterations, and Signage

Describe the permitted use, then say which changes need written approval.

Default and Remedies

Explain what counts as a breach, and what happens next.

Signatures

Both parties sign and date, with titles for anyone signing on behalf of a company.

Most net charges start as an estimate and settle later. The tenant pays a monthly amount, then both sides true it up once the real bills arrive.

Write that process into the triple net lease (NNN) agreement. Say when reconciliation happens, what backup documents the tenant can request, and how a credit or shortfall gets handled.

Caps deserve a conversation too. A cap limits how far a controllable cost, such as landscaping, can rise year over year. Uncontrollable costs like taxes usually sit outside any cap.

Ask for two or three years of operating figures before you agree to a number. Past bills are the best guide you will get.

Watch the billing rhythm as well. Some landlords bill monthly against an annual estimate, while others invoice each cost as it arrives. Steady monthly amounts are far easier to budget around, so ask for that structure if the choice is yours.

Commercial leases give both sides wide freedom to set their own terms. So the document itself does most of the work here. Even so, a few things sit outside it.

Before you sign, check:

• Your state’s official website for rules that apply to commercial property agreements.
• Local zoning and permitted use for the business you plan to run.
• Whether your lender or insurer requires specific lease language.
• How property assessments and insurance renewals are billed in your area.

A triple net lease (NNN) agreement can run for many years and move large sums of money. Therefore, a review by a local commercial real estate attorney is money well spent. Bring the draft, the operating history, and your questions to that meeting.