The Triple Net (NNN) Structure
In a Triple Net lease, the tenant pays a lower Base Rent but assumes responsibility for the 'three nets':
1. **N1**: Property Taxes
2. **N2**: Building Insurance
3. **N3**: Common Area Maintenance (CAM)
This structure heavily favors landlords by passing fluctuating operating expenses directly to the tenant.
Gross Leases (Full Service)
A Gross Lease bundles all operating expenses into one fixed rent payment. While the nominal rent appears higher, the tenant is shielded from unexpected spikes in property taxes or roof repairs. Landlords take on the risk of fluctuating costs.