Net lease glossary
NN Lease (Double Net Lease)
A lease where the tenant pays taxes and insurance, but the landlord keeps some maintenance duties, typically roof and structure.
A double net (NN) lease makes the tenant responsible for real estate taxes and insurance, while the landlord keeps some maintenance obligations, most often the roof, structure, and sometimes the parking lot or major building systems. Market usage is inconsistent, so one broker's NN can be another's NNN. Investors should price the retained capital obligations into their return, usually through a reserve, since a roof replacement can consume several months of rent.