NNN properties (or ‘triple net lease properties’) are single-tenant properties that are used for retail. Usually the landlord is responsible for paying various costs associated with the property such as taxes, insurance and any maintenance fees.
In an NNN property lease, however, the tenant is responsible for these costs in addition to the rent that they pay the landlord. This moves the responsibility for paying these fees to the renter of the property and can make life simpler for the landlord who no longer has to be concerned with managing this aspect of owning the property.
These types of properties are usually rented to tenants that are highly reputable with a good credit rating and enable the landlord to simply collect the rent while establishing a relationship with reputable businesses in their area. These types of properties can make an attractive addition to a property portfolio.