Net lease glossary
Absolute NNN Lease
A net lease where the tenant pays every property cost, including roof, structure, and capital replacements, leaving the landlord with no expense obligations.
An absolute NNN lease, sometimes called a bondable lease, shifts every property obligation to the tenant: taxes, insurance, routine maintenance, and capital items such as roof replacement, structural repairs, and parking lot reconstruction. Rent typically cannot be reduced or abated if the building is damaged or condemned. Because the landlord has no operating role, these leases trade mainly on tenant credit, rent, and term, and usually price at lower cap rates than comparable NN deals.