Michael Withrow answers: What is a triple net lease?
The triple net lease is, in addition to base rent the tenant will pay the three nets. It’s the maintenance, real estate tax, and insurance. They’ll pay their portion of that. At the end of the year, once there’ll be a true-up calculation over what you paid on a monthly basis, because it’s estimated, versus what the actual expenses came out to be. It will be trued up, you can receive money back or you can have an additional liability.
