Triple Net Lease

Understand what a triple net lease is in Canadian commercial real estate — how it allocates costs and why it appeals to landlords and tenants.

Triple Net Lease

June 09, 2025


What is a Triple Net Lease?

A triple net lease (NNN) is a commercial lease where the tenant pays base rent plus property taxes, building insurance, and maintenance costs.

Why Triple Net Leases Matter in Real Estate

In Canadian commercial real estate, triple net leases shift financial responsibility from landlords to tenants, making them common in retail plazas and standalone buildings.



Tenant responsibilities under a triple net lease include:



Landlords benefit from stable, predictable income with fewer operating costs, while tenants gain control over the premises.



Understanding triple net leases is crucial for investors, business owners, and commercial landlords managing long-term financial risk.

Example of a Triple Net Lease in Action

A pharmacy signs a triple net lease that requires it to pay all property taxes and insurance in addition to the base rent for its retail location.

Key Takeaways

  • Tenant pays rent plus taxes, insurance, and maintenance
  • Lowers landlord's financial burden
  • Common in commercial property leases
  • Involves long-term tenant responsibility
  • Requires clear lease documentation

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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