Double Net Lease (NN)
What does it mean
A Double Net Lease (NN) in commercial real estate requires tenants to pay property expenses beyond their base rent and utilities. In this arrangement, tenants assume responsibility for two of the following property expenses: insurance, taxes, or maintenance. This type of lease transfers property risk from the landlord to the tenant.
Why does it matter
Whether your borrower is a tenant or landlord, the lease agreement type directly influences their income statement. Their income-generating capacity in turn affects their loan repayment capability.
Other Relevant Terms
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