Glossary
Lease Types
Absolute Net Lease (Bondable Lease)
The most tenant-unfavorable version of a net lease, where the tenant covers every cost with no landlord obligations at all, not even in the event of casualty or condemnation. Firms use it as a benchmark. Any landlord-side cost showing up in a bondable lease's reconciliation should not appear there at all.
Firm impact
A bondable lease sets an unusually clean baseline for an audit, since there is little left for the landlord to be responsible for. That makes any landlord-retained cost that surfaces on the reconciliation an easy, well-supported finding.
How this gets abused
A landlord under an absolute net lease bills the tenant for its own corporate insurance and a portion of a legal settlement tied to unrelated properties in its portfolio, costs with no basis in a lease structure designed to shift every operating cost to the tenant, not create new landlord pass-throughs.
Practitioner note
Confirm the lease is genuinely absolute net (zero landlord obligations, no rent abatement even after casualty) before treating any landlord-side cost on the statement as automatically disqualified. It is a narrow category, so verify the lease language rather than assuming from the "bondable" label alone.
Related terms
FAQ
Questions about absolute net lease (bondable lease)
How is an absolute net lease different from a standard triple net lease?
A standard NNN lease still leaves the landlord responsible for certain structural or capital items in most cases. An absolute net (bondable) lease shifts every cost, including casualty and condemnation risk, entirely to the tenant with no exceptions.
Why is "bondable" used to describe this lease type?
Because the landlord's income stream is so insulated from operating risk that lenders can treat the lease payments like a bond's fixed income stream when financing the property.
You know the term. Now check the math.
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