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.
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:
- Real estate taxes
- Property and liability insurance
- Routine building maintenance and repairs
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
- Commercial Lease
- Operating Costs
- Net Lease
- Property Management
- Lease Agreement
An overview of Hedge Road Landing. (Alliance Homes)
6525 Mississauga Road and its surrounding context. (RBC Capital Markets & CBRE)
Property details for 6525 Mississauga Road. (RBC Capital Markets & CBRE)
National average resale-price growth and housing-starts growth, smoothed over three months. The comparison illustrates the cycle; it does not establish how much a price change causes construction to change.
Trailing 12-month starts in centres of 50,000 or more remove the usual monthly seasonality. Ownership combines the homeowner and condominium categories; rental is shown separately.
Six-month averages of provincial starts, expressed at annual rates. The smoothing reduces the influence of individual apartment projects.
The same August benchmark compared with two different starting points. Three-month changes are not annualized.
Average sale prices show the difference in purchase costs across markets. They do not measure affordability relative to local incomes or construction costs.
Newfoundland and Labrador remains above its pre-pandemic sales pattern, but August activity was below last year. Historical lines retain their original release vintages.
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
Highlights from the Delta Golf & Country Club listing brochure. (Colliers)