A triple net (NNN) commercial lease agreement form is an agreement where the tenant is responsible for paying the three nets of a property. These three nets are real estate/property taxes, common area maintenance (CAM), and property insurance. These expenses in most triple-net (NNN) commercial leases include all utilities and property services used by the tenant.
Moreover, an estimate of the yearly expenses is identified and after that, incorporated into the monthly rental rates. The expenses incurred during the previous year, this estimate is ordinarily depends on them. At the end of the year, in case the total costs of the three ‘nets’ are lower than the estimated value, the tenant is refunded accordingly. Still, the tenant is expected to pay the difference if the total surpasses the estimate.
How to write a triple net commercial lease agreement?
Follow the below steps in order to come up with an effective up to standard triple net (NNN) commercial lease agreement;
Take a copy of the NNN agreement
You should get a Triple-Net agreement sample for having a visual idea of how a Triple-Net lease agreement should be structured and what it contains.
Add personal data
After conversing with how to format the lease agreement, you have to write the agreement. At first, you should include the personal information of the tenant and the landlord and the date of the lease agreement.
Describe rental place
In the next step, you should provide a description of the property being leased. The property/space should be demonstrated by outlining some of its following attributes;
- Define the location
- Define the space being leased
- Indicate the property use
Requirements of agreement
After defining the property, now the NNN lease agreement should look into the following guidelines of the lease agreement;
- A definition of the lease term
- The agreed-on amount of rent for the first term
Financial aspects in agreement
In the next section, the lease agreement should outline that throughout the lease term how the security deposit, rent, and late payment will be handled;
- As the lease progress, the status of the rental rates
- Security deposit requirements
- Late rent payment
- Consequences of a late payment
- Renewal option for this lease
- The total upfront payment needed
General things to be included
At this point in the lease agreement, any other pending information that should appear in the agreement should be included. These inclusions are generally included in order to improve the effectiveness of the agreement.
- First day of tenancy
- The lessor must maintain insurance coverage
- Each tenant should be assigned the proportionate space where there are multiple tenants on the property
- Before the end of the lease term, advertisement for replacement tenants
- As a response to (Natural) Destruction, notice for termination of lease
- Other additional information on notices
Additional terms and conditions
For the contents written in the NNN lease agreement, note that either party can only be held accountable. Therefore, at this point in the agreement, any further concerns that either party might have be addressed.
Report on all attached documents
A NNN lease agreement can be attached by other documents like disclosures, inspection results, additional provisions, etc. You may also like Commercial Invoice Templates.
Here, you have to provide a formal acknowledgment and acceptance of the laid-out duties and responsibilities. This is important to bind the parties to be named after to the agreement.
- Landlord’s information
- Tenant’s official signature
- Agent’s signature
Proof of notarizations
It is the last step in writing the agreement. The parties have to sign in the presence of a notary public. The notary public shows the following;
- The state and county representation
- The date of witnessing
- The lessor and lessee names as established
Triple Net (NNN) Commercial Lease Agreement Form
Commercial Triple Net (NNN) Lease Agreement
In conclusion, writing a triple net (NNN) commercial lease agreement form is a procedural process. This agreement is an official document used for letting out commercial real estate. It contains the rights and responsibilities of both the landlord and the tenant.