What does "NNN" stand for?

"NNN" stands for a triple net lease. This type of lease gives the tenant the responsibility of paying all of a property's operating expenses. This type of lease is considered a "turnkey" lease, or an absolute net lease, because the landlord holds no financial responsibility for operating expenses.

NNN leases, however, do not normally pass on the cost of legal and accounting paperwork costs onto the tenant. Landlords chose NNN lease options due to the steady income derived from the tenants as well as low maintenance costs. However, landlords typically look for tenants with excellent credit ratings. NNN leases are also commonly used in commercial real estate.