This article considers 9 leading REITs that lease free-standing properties on a triple net basis. With the triple net lease agreements, owners can pass on this spending to the tenants. Current federal capital gains tax is 15% on the amount the property has appreciated in value. If a NNN lease is used in a multi-tenant building, the lease will divide the costs on a per-tenant basis. ★★★★★. The triple net lease amount is $8 per sq. Owners, Operators Get in Sync. . Only the components that are integral to the right to use an underlying asset are considered lease components. A single net lease is a form of pass through lease in which. ($1. That's the best part about a triple net lease. Triple Net (NNN) Lease vs. However, the rental income is specified service income because Partnership B is an SSTB and the two partnerships are commonly owned. 8% net investment income tax imposed by Sec. Included in the $7,500 per month amount is both the base lease rate and the operating expenses. These increases result in improved Net Operating Income over time. Insurance is one of the three “nets” of a triple net lease, and it is required on commercial properties. What is a triple net (NNN) lease? The triple net lease is the most common type of lease you’ll encounter when searching for commercial real estate. 5 percent cap, you know that you can count on $150,000 per year for the life of the lease. This treatment echoes a previous conclusion by the IRS that holding property rented on a triple-net basis is an investment rather than a Sec. 20 for insurance and . The recently issued proposed regulations on 199A QBI deduction. A “Triple Net Lease”, or NNN lease, is a standard type of lease for commercial real estate (CRE). To calculate the triple net lease price for each tenant in your property, add this monthly cost total to the monthly rental rate per square foot and multiply. Dallas-based Spirit Realty Capital Inc. The REIT’s portfolio includes more than 80 dollar stores. Download the Standard Industrial Lease – Triple Net Lease (NNN) Template. As of this publication date, more than 90% of the U. With a triple net lease, tenants are responsible for 100% of operating costs on top of the rent they owe. COMMENTARY. It examines their potential for external growth and for internal growth. Double net leases include property taxes plus insurance premiums, is addition to an base rent. Under triple net leases, the tenant pays for the property’s taxes, insurance, and maintenance in addition to the rental rate. However, instead of including all taxes, insurance, and common area maintenance (CAM) in the rent amount, the tenant pays an equal portion based on square footage. To reach net zero emissions by 2050, annual clean energy investment worldwide will need to more than triple by 2030 to around $4 trillion. Sometimes, we feel. Gross Lease: A gross lease is a type of commercial lease where the landlord pays for the building's property taxes, insurance and maintenance. 35 million-square-foot property was 98 percent leased to 15 tenants, according to the DBRS report. 4. Many real estate investors hoping for clarity on whether they will be eligible for the tax break. Compound meters are meters in which the beat divides into three and then further subdivides into six. This outcome contrasts traditional commercial lease agreements where the landlord is. 33 But triple net lease landlords also should consider renegotiating those. Investment grade-rated tenants account for 66 percent of the rentable area. Similarly, each of the six atoms centered on a face is only half-owned by the cell. clear lease terms or rental clauses that will provide a way for you to make adjustments to the rent on a more frequent basis. Your tenant must provide a certificate of liability insurance to the landlord. g. 137,000 square-foot center south of DTLA fetches $45M. See Notice 2006-77. acquired a skilled nursing center in Kansas City. This is also a major pro when considering investing in a triple net lease property, as it provides a steady, predictable revenue stream on a monthly basis. eligible for the Section 199A tax break. Figuring a shareholder’s stock and debt basis. In addition to the tenant’s base rent, a Triple Net Lease contains a provision that says the tenant is responsible for certain costs associated with operating the property. One of the marketing challenges of a gross lease is that it looks more expensive than a net one. A triple net lease (NNN) benefits commercial landlords by reducing the potential risk that comes with a commercial lease. If they sign an NNN, the tenant accepts responsibility for all property expenses such as:About Triple-Net Leases. Gross Lease. For the landlords, a triple net lease relieves them of a lot of the work of managing a property. In commercial real estate, the most common form of net lease is the “triple net” lease, often referred to as net-net-net lease or NNN lease. 46x. Many triple-net lease rental activities likely fail the regular and continuous activity test and won’t qualify for the Section 199A deduction. 90) per square foot of Rentable Area per month, on a triple net basis for the first twelve (12) months and shall be adjusted as set forth in. Ask them what they are doing to combat the triple planetary crisis – tell them it is important to you and your peers. tenancy at sufferance. In this. Single-tenant triple net lease investments are ideal for risk-averse. In a triple net lease agreement, landlords charge a lower monthly rent to commercial tenants and in exchange, the tenant is responsible for covering three additional costs—property taxes, building insurance, and common area maintenance. Each “N” or “Net. This final safe-harbor rule provides that a rental real estate enterprise will be consideredWhat is a triple net lease? To answer the question, "What is a triple net lease?", a triple net lease (NNN) is a tenancy agreement on a property where the tenant agrees to cover the building expenses such as maintenance, building insurance, and real estate taxes. When it comes to the QBI deduction, however, landlords who hold triple net leases are not considered to be. There are three types of net leases where the tenant pays the monthly base rent plus ‘extras’: Single Net Lease – property tax is paid for by the tenant. Office, industrial, retail, and restaurant space landlords offer lease space on a triple net basis. (2) Allocating the AAA to loss property. Net leases can also go by the name of Triple Net Leases or NNN Leases. However, as leasing practices have evolved, and depending on the property's location or local custom, the term. Triple-net leased assets are particularly attractive to investors new to the real estate world because they act so much like fixed-. A single triple. ft. List your company’s current and expected future space needs, and determine your budget and preferred location. The owner usually maintains responsibility for repairs, including major. 90) per square foot of Rentable Area per month, on a triple net basis for the first twelve (12) months and shall be adjusted as set forth in. 24. Operating expenditures. Their portfolio consists of 145 properties that cover 3. Roosevelt in the United States between 1933 and 1938. In one example, a landlord constructs a building and leases the entire building to a single tenant on a triple net basis whereby the tenant is responsible for all costs relating to the building. Depending on the commercial retail. Tenant s Representative. 00 – $25. A triple net lease agreement form is a document used for the leasing of commercial real estate. Material Participation. Coupling that with minimum hands-on management makes NNN an attractive option as an investment. A triple net (NNN) lease is defined as a lease structure where the tenant is responsible for paying all operating expenses associated with a property. Triple net leases are usually structured with a flat rent or with fixed increases. This includes maintenance, repairs, property taxes, insurance. Industrial gross (IG) is a comprehensive rate that includes base rent, and often can include property taxes, insurance, and CAM, all of which are reflected in the cost per square foot per year rental quote. The triple point. In most cases, with a single net lease, the tenant pays for property taxes directly or into an escrow account and nothing else besides rent. triple negative because they are ER-, PR- and HER2-. Common basis increases include capital contributions, ordinary income, investment income and gains. Among the different lease types, Triple Net and Absolute Net Leases are most often confused. Double Net Lease – property tax and building insurance are paid by the tenant. The main difference between DES and AES is that in DES, the block is split into two halves before being processed further, but in AES, the entire block is processed to get ciphertext. Updated March 24, 2021. When using a 1031 exchange, not only can the capital gains tax be deferred (possibly indefinitely),. NNN stands for the three “nets” in the lease: Common area maintenance (CAM) Property taxes. It is focused on the ownership of high-quality farms and farm-related properties that are leased on a triple-net basis to tenants with a strong operating history and deep farming resources. This is a basic overview of each of these types: NNN – Triple Net –This type of lease rate includes the base rental rate plus the three N’s. Triple Net or Net Net Net (NNN) leases are a commercial real estate lease structure that pushes the responsibility of the additional rent expenses related to. On the other hand, under a full service lease, the landlord will bear all of this risk. A triple net lease agreement form is a document used for the leasing of commercial real estate. Taxpayers have the option of electing out of this rule and using 30% instead of 50%. The triple net amount. On July 28, 2020, the Treasury Department and IRS released long-awaited final regulations ( TD 9005) (the Final Regulations) and proposed regulations ( REG-107911-18) (the Proposed Regulations) on the IRC Section 163 (j) business interest expense limitation (the Section 163. When you buy a $2,000,000 property at a 7. Triple net” properties (also known as NNN properties, short for Net Net Net) are a type of commercial real estate in which the tenant is required to pay the landlord’s cost in addition to the monthly rent. The first is a single net lease, in which the tenant is responsible only for paying property taxes plus base rent. A triple net lease also called an NNN lease, is one in which the tenant handles the basic rent, monthly property taxes, insurance, and maintenance. triple net basis to Advance Auto over a long-term lease. The NNN indicates that it’s a triple net lease. On that basis, we see Federal as fully valued today. Examples of businesses that. NNN stands for Triple Net rent. Contacts. Learn how it can be valuable for investors. In contrast, in standard commercial. NNN Leases typically have clauses that exclude major maintenance from those. However, the landlord is responsible for taking care of the roof and structure. You might be quoted: $32. 50-$1. Collagen is the most abundant protein in animals. Washington Plaza located at 408-530 E. 5% every year or 10% every five years. ab initio (Hartree Fock) - Complete Neglect of Differential Overlap. Note: There is the risk to the tenant of more variability on a year-over-year basis with triple net leases. About Canadian Net – Canadian Net Real Estate Investment Trust is an open-ended trust that acquires and owns high quality triple net and management-free commercial real estate properties. The owner pays for the property's insurance, repairs, maintenance, and other costs. Posted Sep 18, 2020. Triple net lease, or NNN lease. Take a closer look to learn more about how these commercial real estate leases work. The rate is typically calculated on a square footage basis over a period of time and is generally billed monthly. A triple net lease is a real estate agreement in which the tenant pays all expenses associated with the property, such as taxes, insurance, and maintenance costs. These. tenancy by the entirety. NNN – Triple Net – a triple net lease rate is an agreement in which the tenant. WPC also offers investors a 50 basis points. A lease in which the tenant is responsible for costs in addition to rent. ” If not shown, you might have to ask the landlord or agent how much the pass-through expenses cost. The gross amounts of each portion of the transaction should be disclosed. It also details some of the benefits of a Delaware Statutory Trust vs. This includes standard property repairs. Formerly known as National Retail Properties, NNN REIT (NYSE:NNN), is, as its name suggests, a REIT focused on properties leased out on a triple-net basis. Net lease. DEPOTECH CORPORATION,. Depending on your space needs, required fixtures, and desired amenities, you will be quoted for one of the following:. Current ‘‘market’’ rent is $20 per square foot on a triple net basis (for leases signed today). Lease Rates Explained . In a triple lease agreement, the majority of a building’s standard operating costs are assumed by the tenant. Building insurance. Tenants can renegotiate triple net leases, and property owners may be asked to come to the negotiating table despite having a signed lease agreement in place. The words single, double, and triple refer to the different expenses a tenant can expect to pay each month on top of their base rent. NETSTREIT's stock has fallen 25% year to date, making its AFFO multiple fairly cheap at 11X estimated 2024 AFFO of $1. Triple net leases are usually whole building leases with a single tenant. Four Corners Property Trust: Bill Lenehan, 415-965-8031 CEO Gerry Morgan, 415-965-8032 CFOThe Benefit of Lower Rent. Triple Net (NNN) leases: Single tenant net lease properties are often structured as triple net leases (NNN leases). These terms are used interchangeably and mean the same thing; the Basic Rent is net to the landlord. Since. However, if rental real estate involving a triple net lease is otherwise treated as a trade or business under section 199A, then the income, gains, losses and deductions would be included in QBI. CAM caps in triple net leases can be cumulative or compounded (also referred to as non-cumulative), and calculated either year over base or year over year. This would be through the absolute net ground lease. You might be quoted: $32. In this example, the tenant’s pro rata share of the building is 10% (5,000 square feet leased / 50,000 square foot property) and the total monthly rent under a single net. Net Lease: A provision that requires the tenant to pay a portion or all of the taxes, fees and maintenance costs for the property in addition to rent. limited liability and individual tax returns, conducting tax research, performing basis adjustments. The New Deal was a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Taxpayers making the safe harbor election must include a statement with their tax return indicating they have met all safe harbor requirements. A Triple-Net Lease, or NNN lease, is a type of commercial real estate lease commonly used for restaurant or retail franchises in the United States. Landlords may pass on any number of expenses in a modified gross lease, such as utilities, common area maintenance, janitorial, etc. A modified gross lease falls somewhere between a gross lease and a triple net lease. On a Constant Currency basis 1, revenue would have been $97. The “three nets” it refers to are taxes, insurance, and. A Triple Net Lease or NNN Lease is one of the most common lease structures in commercial real estate. The most basic way to quote rent is on a triple net basis. The term "net lease" is often used as a shorthand expression for any of these arrangements. 1368–1(d)(1) applies; and (iii) Exceeds the amount of the corporation's AAA properly allocable to that distribution. Kimco Realty, a large owner of shopping mail retail properties, owns several properties that are leased on a triple-net basis to TJ Maxx and other big box retailers, where the tenant pays property taxes, insurance, and maintenance costs as well ground lease payments. These additional expenses make up the three “nets” and are. A triple net lease, or a net lease, is one of the most common lease structures. This is also by no small margin as the next highest yield is a cool 340 basis points. definition. , net rental income. gain (or loss) that is a taxable event. As we’ve seen throughout this article, the modified gross lease is a lease structure where the landlord and the tenant both share the cost of operating expenses. Learn what NNN means in a commercial real estate environment, how this kind of commercial lease differs from other lease arrangements, and what the advantages of leasing a triple net property are. Buffer from higher operating expenses. 1,2 The company has an S&P Global rating of BBB (August 2021) and a Moody’s bond rating of Ba2 (March 2021). The IRS finalized this safe-harbor requirements recently when it published Revenue Procedure 2019-38. The net profit would remain the same and the 50% owner would continue to report $150,000 of net rental real estate income on their personal return. A gross lease can be modified to meet the needs of a. A triple net lease works by a commercial property owner leasing a building or space to a tenant. limited liability and individual tax returns, conducting tax research, performing basis adjustments. 00 + . A triple net lease, also known as a net-net-net or NNN lease, insulates the landlord of the obligation to cover all expenses mentioned above such as property taxes, insurance premiums, utilities, maintenance, and repair costs. As a percentage of total retail sales, e. The IRS finalized this safe-harbor requirements recently when it published Revenue Procedure 2019-38. 1 of. Things would run perfectly the same as it was before the transaction. Focus on the Market: Triple Net Lease or NNN Properties. In return, you save out-of-pocket expenses of $900/month for property taxes. Examples of Triple Net Expenses in a sentence. Per Real Capital Analytics, 1H18 transaction volumes (for retail NNN assets above $2. The second option is a double net lease, where the tenant is responsible for paying rent, taxes, and insurance. The net rental income from Partnership A is deemed QBI. A ground lease represents an arrangement, in which the tenant takes on the costs of developing and maintaining a property during a specified period of time. With that, they deal with the maintenance costs for the property. Single tenant properties typically trade at attractive cap rates that are hundreds of basis points above comparable non-real. accumulated capital gain (or depreciation recapture, amortization and depletion) of. The first net is associated with property tax, another net goes for the property insurance, and the last net refers to the common area expenses. This basically means that the tenant is responsible for payment of real estate taxes and operating expenses. Triple net leases are quickly becoming standard for larger properties that have a higher cost basis. Because the tenant is responsible for costs that the lessor would otherwise pay, rent on a triple-net lease is. Princetown's board of directors recently learned that Merryvale is bankrupt. This includes maintenance costs such as common area maintenance (CAM), insurance, and property. The term “triple net lease” refers to a commercial lease in which the basic rental rate (which is almost always quoted on a per sq ft, per annum basis) is what the landlord “nets” in his pocket. Click the card to flip 👆. These expenses include property taxes, property insurance, and maintenance,. 00 number is your Base Rent. Major federal programs and. 9 million square feet and are located in 34. It signifies the level of risk and is just one measurement of the equity return on investment. If you are the tenant with a triple-net lease, you have to pay for property taxes, insurance, and maintenance on the building. 94 per land square foot. Each N stands for the net and signifies one of the aspects of this agreement. 775. EA s for ions. 2020-1960. In this type of commercial real estate rent, you pay the amount listed and you also have pay additional costs (usually Operating Expenses) on top of that. The majority (about 75%) of triple negative breast cancers fall in to the basal-like subtype defined by gene expression profiling. Those costs are outlined in three “Nets”. Historically, triple net refers to leases where a tenant rents an entire freestanding commercial building and pays for all property expenses. Those costs are outlined in three “Nets”. See moreThe triple net lease (NNN) passes the costs of structural maintenance and repairs to the tenant in addition to rent, property taxes, and insurance premiums. In contrast, the landlord can take a hands-off approach while the property is being developed to the tenant’s tastes. This type of. e. Triple net (NNN): the tenant pays rent, utilities, property taxes, insurance, and maintenance. Under a triple net lease the tenant will be responsible for paying all operating expenses and therefore all increases year to year. (2 Electron NDDO Methods) Basis: 32 molecule parameterization. "As a result, both parties have entered into a lease agreement for a period of 10 years on a triple net basis for Menara Maybank, concurrently with the tenancy agreement for Menara Merdeka 118. Cons: metals w/ unpaired e. 1. Businesses can manage anywhere from 50 properties to thousands of properties. Calculation of AAA when there is a net negative adjustment: L is the sole shareholder of S Inc. The REIT’s portfolio includes more than 80 dollar stores. Under the triple net lease terms, Starbucks will pay for all of the expenses for the next 15 years. The landlord "nets" the base rent, with no obligation to spend money on property operations. , certain berries and. U. However, a NNN amount per year of $10 would yield $10,000 a year. Rev. Double Net Lease: An agreement in which the tenant is responsible for both property taxes and premiums for insuring the building. Other properties used to measure temperature include electrical resistance, color, and the emission of infrared radiation (Figure (PageIndex{1})). 6 Firestone Auto Care (Ground Lease) 1313 Harrisburg Pike Columbus, OH 1989 6,707 2/21/2014 $605,900 $90 6. 01. Tax Savings from a 1031 Exchange. Remember that triple net leases are just one of many commercial lease options, and this option provides a lot of exciting benefits for landlords: Long-term occupancies. However, instead of including all taxes, insurance, and common area maintenance (CAM) in the rent amount, the tenant pays an equal portion based on square footage. The Final Regulations include two examples addressing triple net-leased property. Professional representation in lease negotiations can serve both parties. knows the building history and may be comfortable accepting the responsibility for future repairs on that basis. Net lease requirements are most commonly used. 368(a)(1)(D) are not met. The leases have. January 1, 2023. Single Net Leases are less common than a double or triple net. Tenant A will pay $4,700/month and Tenant B will pay $9,400 per month. A tenant strapped for cash (possibly due to rising insurance and tax rates) might let some of the maintenance slip. 677 (a) as to the income portion and possibly also Sec. A triple net (NNN) lease requires the lessee (tenant) to pay three required expenditures related to the rented real estate: maintenance, insurance, and taxes. Lower risk commercial investing. . 00 NNN per sqft/year. However, properties leased on a triple net basis were not eligible to rely on this safe harbor. ”. Ranking high on the hottest tax topics of the 2018 filing season was in regards to Section 199A, which allows for a 20% tax deduction on qualified business income (QBI) for S-Corporations, LLCs and/or Sole Proprietorships. Evaluate your business needs. In normal times the REITs of this sector tend to have 100% rent collection and no problems, but. By: Jason Schneider, CPA/Partner, Osborne Rincon CPAs. A lease in which the tenant is responsible for costs in addition to rent. The occupants are usually. The Internal Revenue Code is a labyrinth — you might t hink that you have visited every room only to discover an opening that leads to yet another maze to explore. The 100% bonus. However, cash basis is the most popular method for small businesses. REITs largely generate the very type of passive income — for example, rental income earned via a triple-net lease — that if earned by a non-REIT rental activity could cause the activity to fail to rise to the level of a Sec. Base Amount = Rent per square foot x Square footage = $30/sqft x 1,000 sqft = $30,000 a year or $2,500 a month. One “N” stands for property taxes, one for. | Category: Commercial |. Triple net lease quotes. 8B, with average cap rates of 6. There are many ways to make a profit with commercial real estate. S&P Global Ratings expects the COVID-19 pandemic and resulting state government-imposed lockdowns to result in material near-term reductions in rent collections for U. Property tax. Office or Warehouse). 1%. In a triple net lease, the landlord is responsible for: The Mortgage: The property owner uses the income stream produced by tenant rents to pay the mortgage on a monthly basis. In such an agreement, the landlord is not liable for property taxes, insurance premiums and maintenance costs associated with the property. Final IRS Guidance for Rental Deduction Still Leaves Triple Net Leases Out in the Cold. Your total monthly rental income drops $900, from $15,000 to $14,100. Triple Net Rent Basis means lease rental payments whereby a tenant makes both monthly base rental payments to the landlord and the tenant is responsible, in addition, to pay for all taxes, insurance, utilities, operating and maintenance costs. Key takeaways. This includes a lease agreement that requires the tenant or. The added expenses include maintenance charges,. The tenant is responsible for net property taxes, net insurance, and net maintenance for the duration of the lease, which is the origin of the name. The implied cap rate is 5. Net lease REITs pay an average dividend yield of 4. For example, volume increases with temperature for most substances. In a sales-type or direct financing lease, the lessor derecognizes the leased asset and recognizes a lease investment on its balance sheet as discussed in LG 4. Coupling that with minimum hands-on management makes NNN. As a percentage of total retail sales, e. For property investors, who want to own a revenue-generating property and pay. The capitalization rate is used to compute the lease payment; it establishes the rate of return. , location and demographics). Landlord s Representative. This article considers 9 leading REITs that lease free-standing properties on a triple net basis. ($1. A triple net lease is a commercial lease agreement in which the tenant is responsible for three expenses in addition to rent: Building maintenance. A triple net lease (triple-net or NNN) is a lease agreement on a property whereby the tenant or lessee promises to pay all the expenses of the property, including real estate taxes, building. However, in recent years, the triple net lease structure is also finding its way into office and industrial, too. Fixed, determinable, annual, or periodic income that is not ECI. The triple net lease (NNN) passes the costs of structural maintenance and repairs to the tenant in addition to rent, property taxes, and insurance premiums. A lease that requires only that basic rent be paid, usually on a monthly basis, is known as a “gross lease”. tenancy at will. A triple net lease, also known as an NNN lease, is a lease agreement in which the tenant is responsible for all the ongoing expenses of the property, including property taxes, insurance, maintenance costs, and paying the rent and utilities associated with the property. Full-Service Lease Rate: 3,000 SF x $30 per SF per year = $90,000 per year, or $7,500 per month. Let's say this amount is $20,000 a month. Historically, triple net refers to leases where a tenant rents an entire freestanding commercial building and pays for all property expenses. tenancy by the entireties. To make this legal template accessible to everyone, it is offered on a “Pay What You’re Able” basis with no minimum (enter $0 if you’d like) or maximum (your support helps keep the content coming – typical legal document templates sell for $100+). For example, an investor is weighing two investment opportunities that have the exact same purchase price. • This site is leased on an absolute triple-net basis with a 20 year initial term that expires in September of 2019. In addition to the tenant’s base rent, a Triple Net Lease contains a provision that says the tenant is responsible for certain costs associated with operating the property. After all, you'd rather pay $21 per square foot in rent than $33, right? However, if the $33 lease is a gross one and the $21 is a triple net lease in a building with $13 in CAMs and other expenses, the gross lease is actually less expensive. Real estate rented under a triple net lease is not eligible for this safe harbor. The grand total is then (8 × 1/8) + (6 × ½) = 4 atoms per unit cell. ”. eligible for the Section 199A tax break. A triple-net (NNN) commercial lease agreement is a contract between a landlord and a tenant that pays for the three (3) ‘nets’, property insurance, real estate taxes, and common area maintenance (CAM). For partnerships, the increase to 50% only applies for 2020. Also, a tenant can not claim rent losses as business losses. An NNN lease is an attractive option for many renters because it allows them. Download. The monthly cost is represented by the figure you end up with. and more. This type of arrangement stems from industrial real estate properties, where. These increases could occur for instance because property taxes or insurance rates rise, or simply because of inflation. Triple Net Lease (NNN Lease) : In a triple net lease , the tenant pays a base monthly rental amount plus all three of the major operating expenses categories. [email protected] Net Lease: A commercial real estate lease agreement in which the tenant is required to pay property taxes in addition to rent. Dollar Tree is a chain of discount stores that sell all items for $1. The triple net lease is the most-used type of commercial lease for free-standing buildings with a single tenant. That's the best part about a triple net lease. A Zero-Energy Building (ZEB), also known as a Net Zero-Energy (NZE) building, is a building with net zero energy consumption, meaning the total amount of energy used by the building on an annual basis is equal to the amount of renewable energy created on the site or in other definitions by renewable energy sources offsite, using technology such as. A triple net ground lease (NNN) refers to the three responsibilities a tenant takes on when renting the land. Example: If an investor is selling a triple net shopping center for $1,000,000, and has a net adjusted basis of $500,000, the investor will have a gain of $500,000 upon the sale of the property. Building insurance. Lessee shall be entitled to possession and occupancy of the leased premises on February 1, 2012 (the “Occupancy Date”); provided that this Lease Agreement has been executed by all parties and that the payment of the first month’s rental rate for all units for February-2012, the Triple Net Expenses for all units.