net lease

A net lease is a type of commercial real estate lease in which the tenant pays the base rent plus some or all of the property’s operating and maintenance expenses. These expenses may include property taxes, insurance, utilities, and common-area maintenance (CAM). In contrast, under a gross lease, the landlord pays these expenses, and the tenant pays a single, all-inclusive rent amount.

Net leases are commonly categorized into three types:

  1. Single net lease (N lease): The tenant pays base rent + property taxes.
  2. Double net lease (NN lease): The tenant pays base rent + property taxes + insurance.
  3. Triple net lease (NNN lease): The tenant pays rent + property taxes + insurance + CAM charges (and sometimes other costs such as utilities or repairs).

Triple net leases are most common in commercial real estate, particularly where a single tenant leases an entire building or a substantial portion of it.

[Last reviewed in November of 2025 by the Wex Definitions Team] 

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