NNN lease

Percentage Rent in Retail Leases: What Owners Should Know

Percentage rent is additional rent a retail tenant pays based on a share of its gross sales above an agreed sales threshold. It lets an owner participate in a store's upside without pushing base rent past what the tenant will sign, and it shows up most often with national and regional chains, restaurants, and anchors. Whether the clause is actually worth anything depends on three things: the breakpoint,...

Triple Net (NNN) Leases Explained for Retail Property Owners

A triple net lease, usually written as NNN, is a retail lease structure where the tenant pays base rent plus its share of three operating costs: property taxes, building insurance, and common area maintenance. For owners, this passes most of the variable cost of running the property to tenants and produces a steadier stream of net income. Below is how NNN leases work and what to watch for as a retail...

What Is CAM Reconciliation? A Guide for Retail Property Owners

CAM reconciliation is the year-end process of comparing the Common Area Maintenance (CAM) charges a landlord estimated and billed to tenants during the year against the actual costs incurred, then billing or crediting each tenant for the difference. For retail owners it is one of the most important, and most commonly mishandled, parts of management. How CAM charges workIn most retail leases, especially...

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