Net lease glossary
Roof and Structure
A common landlord obligation in NN leases covering repair and replacement of the building's roof, foundation, and structural elements.
Roof and structure obligations make the landlord responsible for repairing and replacing the roof, foundation, load-bearing walls, and other structural components. Leases vary on whether roof repairs, roof replacement, or both fall to the landlord. Investors should obtain a property condition report, note roof age and warranty, and confirm whether the tenant must pay for damage it causes. These obligations are a main reason NN deals trade at higher cap rates than absolute NNN deals.