(NNN) Three Triple Net Lease Sold

NNN Lease Market News

Reston, VA — Calkain Companies', a national real estate investment brokerage firm, has procured the sale of three triple net (NNN) lease investment properties including a Wendy's in Bowie, MD, M&T Bank in Maple Lawn, MD and a CVS in Fairfax County, VA totaling almost $10 million.

Rick Fernandez, Assistant Vice President of Calkain Realty Advisors', the private market division of Calkain Companies, led the marketing and sales for each of the transactions. Fernandez commented, "The Wash DC metro area has national appeal and the combination of strong performance by the tenants and high profile locations made these unique opportunities for the investors." Fernandez generated multiple offers for each of the assets and ultimately completed the sale of each transaction in an obviously challenging market. Jonathan Hipp, President & CEO of Calkain Companies continued, "Rick proved that quality real estate is highly desirable, no matter what market cycle is occurring." In each scenario, appropriate debt was placed on each asset and leveraging the properties with a supportive loan was an essential consideration for each buyer. Fernandez said," The availability of favorable financing is testament to the strength and stability of the Wash DC metro market."

Commercial NNN Lease Terms

NNN Lease Terms

General Terms and Definitionsin describing the manner in which services and expenses are paid by the tenant to the landlord; different commercial leasing terminologies are used. Though there is no limitation to the commonly-used terms in a contract, there are some common terms that are found in the majority of commercial real estate contracts. These include:

Net lease - As the term indicates, this is a rent payment that applies exclusively to real estate. This means that other potential operating expenses such as estate taxes, insurance, utilities, etc. are not incorporated in the rental amount as opposed to A Triple Net Lease is also known as Net Net Net Lease or NNN Lease. This is a type of net lease in which the tenant pays all or part of the taxes, insurance, and maintenance associated with use of the property. These fees are paid in addition to the tenant's regular monthly rent.
Triple Net leases almost always favor the landlord and should be carefully negotiated to limit how much the landlord can increase NNN fees each year.

 Gross lease - This usually means that some of the operating expenses are included in the tenant’s payment, such as the real estate taxes. Optionally, building insurance and/or common area maintenance (CAM) could be included as well. Tenants should ask what this amount includes especially any of the escalation clauses included in the agreement.


Modified net lease - This is a term that is a compromise of the triple net lease and the gross lease terms. Usually, this is the term used when both parties enter into an agreement to split maintenance expenses, while the insurance and tax expenses would be shouldered by the tenant. This type of contract term is a common one for either side to easily consider because of its ability to be flexible and creative.

Full service lease - This term implies that the tenant’s payment incorporates all of the occupancy cost. This typically includes base rent, insurance, C.A.M., real estate taxes and even garbage disposal. In some instances, a full service lease may also include an additional charge for electricity.