Single-Tenant Net Lease (NNN) review
Single-tenant triple-net (NNN) commercial lease.
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What it checks
Triple-net (NNN) cost allocation stated
Net lease must specify which expenses (real estate taxes, insurance, CAM / operating expenses) pass through to tenant.
Critical · RE-001
Real-estate-tax pass-through mechanics
Net lease should specify whether taxes are paid directly by tenant or reimbursed.
Warning · RE-002
Insurance requirements (liability + property)
NNN lease must specify tenant insurance: CGL with minimum limits, property insurance, waiver of subrogation.
Critical · RE-003
Maintenance and repair obligations
Single-tenant NNN puts maintenance / repair on tenant; landlord typically retains only structural / roof obligations.
Critical · RE-004
CAM / operating-expense audit right
Tenant should have a CAM / operating-expense audit right.
Warning · RE-005
Casualty and condemnation
Net lease must address damage / destruction and condemnation.
Critical · RE-006
Right to relet / mitigate damages on default
Landlord remedies should address relet / mitigation duty per state law.
Warning · RE-007
Holdover and surrender
Net lease should address holdover rent multiplier and surrender condition.
Warning · RE-008
Every run also applies 114 general checks that belong to any agreement: structure, parties and signatures, defined terms, cross-references, dates, amounts, and one-sided terms.
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