Calculate total monthly occupancy cost under a triple net (NNN) lease. Add base rent plus property tax, insurance, and CAM for the true cost.
A triple net (NNN) lease is the most common commercial lease structure, where the tenant pays base rent plus three additional costs: property taxes, building insurance, and common area maintenance (CAM). The advertised rate (e.g. "$22/sq ft NNN") only tells part of the story — NNN charges can add $8–$15/sq ft annually, increasing your true occupancy cost by 30–60%.
This calculator computes your total monthly and annual occupancy cost under a NNN lease. Enter the base rent per square foot, your unit size, and the estimated NNN charges to see the complete picture.
Understanding your all-in cost is critical for business planning, comparing competing spaces, and negotiating lease terms. Many tenants are surprised by how much NNN charges add to their quoted rent.
Homebuyers, investors, and real-estate professionals all benefit from precise commercial nnn lease figures when evaluating properties, negotiating deals, or planning long-term investment strategies. Save this calculator and revisit it whenever market conditions or your financial situation changes.
The advertised NNN base rent is deceptively low. This calculator shows your actual all-in cost by adding taxes, insurance, and CAM to the base rent, preventing budget surprises. Instant recalculation lets you compare scenarios side by side, so every buying, selling, or investment decision is grounded in solid financial analysis.
Annual Base Rent = Base Rate ($/sqft) × Square Footage Annual NNN Total = (Tax + Insurance + CAM) × Square Footage Total Annual Cost = Annual Base Rent + Annual NNN Total Monthly Cost = Total Annual Cost / 12
Result: $5,667/month total occupancy cost
Base rent: $22/sq ft × 2,000 sq ft = $44,000/year. NNN charges: ($4.50 + $1.50 + $6.00) = $12.00/sq ft × 2,000 = $24,000/year. Total: $68,000/year or $5,667/month. The NNN charges add 55% to the base rent.
Property taxes are typically the largest NNN component. They're based on assessed value and local mill rates. Insurance covers the building structure (not your contents — you need your own business insurance). CAM covers shared costs: landscaping, parking lot maintenance, elevator maintenance, common area utilities, security, and property management fees (usually 3–5% of gross rents).
NNN charges are estimated at lease signing and billed monthly. At year-end, the landlord compares estimated payments against actual costs. If actual costs exceeded estimates, tenants receive a bill for the difference. If estimates exceeded actual costs, tenants get a credit. This reconciliation can surprise tenants, so build a buffer into your budget.
Key NNN negotiation points include: annual cap on increases (5% is common), exclusion of capital expenditures over a threshold, cap on management fees, and inclusion of a "base year" stop where the landlord absorbs increases above a base level.
NNN stands for triple net. The tenant pays three "nets" in addition to base rent: property taxes (N), building insurance (N), and common area maintenance/CAM (N). The landlord passes these operating expenses through to tenants.
NNN charges typically range from $6–$15/sq ft annually. Taxes are the largest component ($3–$8/sq ft), followed by CAM ($2–$5/sq ft) and insurance ($0.50–$2/sq ft). Charges vary widely by property age, location, and building class.
The landlord totals the building's operating expenses and allocates them to tenants based on their pro-rata share (tenant sq ft / total building sq ft). Charges are estimated and billed monthly, then reconciled against actual costs annually.
Yes, and they often do. Property tax reassessments, insurance premium increases, and rising maintenance costs all flow through to tenants. Without a cap, NNN charges can increase 5–10% annually in some markets.
In a gross lease, the landlord includes operating expenses in the rent. In NNN, the tenant pays them separately. Gross lease rent is higher because it includes those costs, but NNN gives more cost transparency and variability.
You can't negotiate actual expenses, but you can negotiate a cap on annual increases, exclusions for capital expenditures, and the management fee percentage. Also verify the base year and ensure reconciliation is transparent.