NNN Commercial Real Estate Virginia
The NNN commercial real estate, also known as Triple Net Lease, is a common lease structure found in commercial real estate in Virginia. This type of lease is very popular among investors and “hands-off” landlords in Virginia. NNN commercial real estate in Virginia has many advantages and they make an overall ideal business investment option for anyone looking to expand their portfolio.
What Is an NNN Lease Agreement?
An NNN lease agreement, or triple net lease, is a specific lease that gives the tenant of a business the sole responsibility to maintain all costs associated with the asset in the agreement. For example, the tenant would need to cover all of the costs of:
- The rent
- Building insurance
- + More
The Advantages of Virginia NNN Commercial Real Estate
The actual benefits of an NNN commercial real estate in Virginia may vary from one lease to another, and depending on the circumstances. In general, the lessee is paying for three types of net costs that are associated with the location of the property, hence the triple net lease (NNN). This is great for landlords/investors because they do not need to handle unexpected costs. Instead, landlords can guarantee on a monthly rent check from the credit worthy tenant, while the tenant handles the cost of operating the business.
Before you sign any commercial lease agreement, you should review the entire contract in full. At Calkain, we specialize in helping investors and landlords make sure the buying and selling process goes smoothly and are ready to help you in your NNN process. Most importantly, your lease should clearly lay out what you will and will not be responsible for paying for. Bear in mind that the accounting costs, legal costs, realtor costs, and other fees may not be included in the agreement.
NNN Lease Variations
There are a few different types or variations of Net Leases:
- Single Net Lease – The tenant responsible only one cost and the landlord handles the rest.
- Double Net Lease – The tenant is responsible for property taxes and insurance on the building. The landlord will be responsible for maintenance and repairs.
- Triple Net Lease – The tenant will be responsible for every conceivable risk relevant to the real estate property.
- Ground Lease – The owner of the land leases land to the tenant in order to construct a new building. The tenant can then proceed with an NNN lease. Once the lease is finished, the building may be reverted back to the owner of the land.