What's the difference between a double net lease and a triple net lease?
The short answer
In a commonly seen structure, a double net (NN) lease passes property taxes and building insurance to the tenant, while the landlord retains responsibility for structural and major maintenance. A triple net (NNN) lease adds maintenance and common area costs as a third passthrough — putting more of the building's operating cost on the tenant. The practical difference is who writes the check when the roof needs repair or the HVAC fails. Both structures are defined by the lease, not by a universal standard, so the labels matter less than what the specific document says. Scan your lease to see exactly which costs each party carries.
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What each lease structure usually does
Under a commonly seen double net structure, the tenant pays base rent plus a pro-rata share of property taxes and building insurance. The landlord generally retains responsibility for structural repairs, the roof, and major mechanical systems. Under a triple net structure, CAM costs — cleaning, landscaping, common area repairs, management fees — pass through as well, and the landlord's maintenance role may be significantly reduced.
The 'nets' are a shorthand, not a legal standard. Some leases labeled NN include CAM items typically found in NNN leases; some NNN leases carve structural repairs back to the landlord. The label is a starting point; the lease's own definitions control what each party actually pays.
Why people worry
Tenants report confusion about which structure they've signed because the labels are not standardized across markets or landlords. The practical concern: a tenant who expects a NN lease — where the landlord covers building maintenance — may find NNN-style costs in a document that uses the NN label, or vice versa. The financial difference between carrying or not carrying building maintenance can be substantial over a multi-year term.
What to look for in your lease
- The explicit list of costs the tenant is obligated to pay beyond base rent — regardless of what the lease calls the structure.
- Whether structural repairs, roof, and major mechanical systems are allocated to the landlord or tenant.
- How each passthrough cost is defined and estimated.
- An annual cap on any maintenance or CAM passthrough.
- Whether the lease uses the NN or NNN label consistently, and whether that label matches the actual cost allocation.
Questions to ask before signing
- Ask the landlord to confirm in writing which specific cost categories the tenant is responsible for.
- Ask the other party to clarify whether roof or structural repairs could ever appear as a passthrough under this lease.
- Confirm how the total estimated annual cost compares to comparable gross leases in the same market.
- Consider having the lease reviewed to verify the cost allocation matches what was described during negotiation.
Why scan instead of guess
The general rule tells you the baseline. Your lease tells you what you’re actually being asked to sign — and the wording is what binds. Dang reads the document and flags the clauses worth reviewing, in plain English.
The deterministic engine scores and decides what’s risky. The AI only enriches the plain-English wording — AI extracts, code decides, never the other way around.
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Common questions
Is NN or NNN better for a small business tenant?
It depends on the total cost and the lease terms. A NN lease may carry less exposure if the building has aging systems, since major repair costs stay with the landlord. What matters is the total all-in cost and what each party is responsible for — the label alone doesn't determine which is better.
Are NN leases more common than NNN leases?
NNN leases are a commonly seen structure for retail and freestanding commercial properties; NN leases appear more often in office and light industrial settings. Both appear frequently and usage varies by market and property type.
No account required · File deleted after analysis · Not legal advice. Dang reports contract findings in plain English — general information, not legal advice about your situation. For consequential decisions, consult a licensed attorney in your state.