I've had several inquiries recently asking me for clarification on Tripple Net Lease (aka: Net Net Net Lease; I've also heard it referred to "Hell or High Water Lease"). In addtion to the Lessee's utilities, operating expenses, and property insurance, the obligations to the landlord can best be described as follows:
A Tripple Net Lease is basically a lease agreement that designates the lessee (the tenant) as being solely responsible for all the costs associated and related to the asset being leased in addition to the rent fee applied under the lease. The structure of this type of lease requires the lessee to pay for net real estate taxes on the leased property, net building insurance, and common area maintenance (aka: CAM Fee). The lessee pays the net amount of the three categories of costs, which is how this term got it's name. Some of the CAM Fees are often proportioned to the relation of the unit size (often square footage ratio) the lessee is occupying in relation to other units within the complex sharing the same amenities.