Office Lease - Triple Net or NNN Lease - DON'T DO IT!

Office Lease - Triple Net or NNN Lease - DON'T DO IT!   EVER!!!!!!!!!!

What the NNN Lease means, is that the owner can charge you anything they want, once a year, or twice a year.  Say that, over the last 12 months, these are the costs of keeping up the building and the grounds.

Watering Lawn $12,000

Snow removal, landscaping, mowing $8917.21

Internet $1680  (Even if you are paying for your own personal internet in the building)

Electricity $4800

Gas $2100

Landline Phone $1680

Accounting Fees $641.87

Advertising $382.22

Property Management/Bookkeeping $11,789.72

Cleaning Common Area $7056.50

Fire Extinguisher Annual $420

HVAC Repairs $238

Insurance $4291

Plants $383.56

Repair/Maintenance $14814.26

Supplies $2727.15

Taxes $19689.31

Trash Removal $2284.83

Utilities $26749.43  (Even if  you are paying your own utilities separatly)

I could add all the rest, but the total was $117,722.59

Of this total, it's divided by the number of tenants in the building and everybody pays their share.

If there are only 8 tenants, each would pay an ADDITIONAL $14,715 for the year in one lump sum, of course, added to the regular monthly rent.  Or split in two payments over this month and next month (still in addition to your normal rent. Guess what????  If there are only 5 tenants left then you would be paying an additional $23,544.52.

My advice, in less you are rich and don't care about cost, absolutly refuse to sign the NNN Lease, or let the owner know you would be interested in signing a 

Full-Service (FS) Lease / Full-Service Gross (FSG) Lease: The tenant pays a single flat fee. The landlord uses this lump sum to cover base rent, utilities, property taxes, building insurance, maintenance, and janitorial services. OR

Gross Lease: Similar to a full-service lease, it bundles base rent and operating costs (like common area maintenance and taxes) into one predictable payment, though utility inclusion can sometimes vary depending on the specific contract.

Just because the owner says "Everybody is doing it, nobody does the gross lease anymore" Well, it's not true. Not at all!  You can shop around online and you will find some that are gross lease and all inclusive. If you find a place you really want, you can always ask for a FSG or Gross Lease.