Triple net leases, commonly referred to as NNN leases, have become one of the most trusted structures in commercial real estate. They are the foundation of many single-tenant properties across the country, offering both financial advantages for investors and long-term security for tenants. Understanding how the triple net structure works is essential to appreciating the stability and value these developments can deliver over time.

What Is a Triple Net Lease? Why Is It Called “NNN”?

A triple net (NNN) lease is a lease structure in which the tenant, rather than the landlord, is responsible for paying three major operating expenses associated with the property:

• Property taxes
• Property insurance
• Maintenance and repairs

These expenses are known as the three “nets”, which is where the term “NNN” originates. In this context, “net” means these costs are net of the landlord’s responsibilities and are instead passed directly to the tenant.

Under this structure, the landlord receives predictable base rent, while the tenant assumes financial responsibility and operational control of the property. NNN leases are especially common in single-tenant, long-term agreements with creditworthy national brands, supporting stability for both investors and tenants.

What Are the Advantages of Triple Net Leases for Investors?

Investors are drawn to NNN properties for their stability, predictability, and passive ownership structure. Key advantages include:

• Consistent Income: Long-term leases with creditworthy tenants provide predictable returns and minimal vacancy risk.
• Reduced Management Burden: With tenants responsible for taxes, insurance, and maintenance, investors enjoy a low-touch ownership model.
• Risk Mitigation: Tenants covering property expenses insulate investors from rising operating costs.
• Long-Term Value: Many NNN tenants represent essential businesses that perform well across economic cycles.
  

For investors seeking durable income and long-term appreciation potential, triple net leases remain a proven, resilient model.

What Are the Advantages of Triple Net Leases for Tenants?

NNN leases also offer meaningful benefits for tenants, especially established brands focused on scalability and operational control. Some advantages include:

• Operational Flexibility: Tenants can design, maintain, and operate their space according to their own standards.
• Brand Consistency: Long-term control of a property supports consistent customer experience across multiple markets.
• Capital Efficiency: Leasing rather than owning frees up capital for core business growth rather than real estate management.
• Location Stability: Long lease terms provide security in key trade areas without the commitment of ownership.
  
  

This structure allows tenants to occupy purpose-built facilities, often developed through build-to-suit arrangements, while maintaining full control of day-to-day operations.

Examples of NNN Lease Developments

CMK Properties has developed a variety of single-tenant assets under triple net structures that serve essential industries. Two examples include:

• Tractor Supply Company: Long-term, NNN-leased rural lifestyle stores supporting national expansion through predictable, repeatable development.
• The Learning Zone: Purpose-built early childhood education facilities designed for operational efficiency and long-term tenant success.
  

These projects demonstrate how NNN leases can align investor interests with tenant growth, reinforcing CMK’s commitment to predictability, partnership, and performance.

NNN Lease Partnership Opportunity

At CMK Properties, our mission is to be the premier single-tenant net lease developer for the nation’s leading brands. For tenants, we deliver high-quality, turnkey build-to-suit facilities supported by efficient NNN structures and a predictable development process. For investors, we provide access to institutional-grade single-tenant assets backed by essential businesses and long-term lease stability.

To learn more about upcoming investment offerings or partnership opportunities, contact us today.

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