Triple-Net

A Triple-Net Lease (commonly abbreviated as NNN) is a specialized commercial lease structure where the tenant assumes responsibility for three primary expense categories associated with the property: property taxes, building insurance, and maintenance costs. Unlike a gross lease, where the landlord typically covers these expenses, a triple-net lease transfers much of the financial and operational risk to the tenant. This lease type is especially prevalent in industrial real estate, where long-term tenant commitments and predictable expense allocation are critical for both parties. From an investor and asset manager perspective, triple-net leases provide stable and predictable income streams by minimizing landlord involvement in day-to-day property management and variable costs. The tenant benefits by having greater control over property-related expenses and operational decisions, often aligning with their logistics or industrial needs. Lease terms under triple-net agreements often span long durations, which enhances tenant retention and supports property value stability. For landlords and developers like IPEC Group, implementing triple-net leases helps streamline portfolio management and optimizes capital deployment by reducing unexpected liability and maintenance interventions.