Glossary
Lease Types
Net Lease
The base structure behind the whole net-lease family (N, NN, NNN), where the tenant pays some portion of property costs, usually starting with real estate tax, on top of base rent. Before scoping a CAM audit, your firm has to confirm exactly which cost categories a given net lease pulls in, since "net lease" alone says very little.
Firm impact
Getting the net-lease type wrong at intake means scoping the wrong cost categories for the whole engagement. A single-net lease and a triple-net lease can look similar in a quick read but authorize very different pass-throughs.
How this gets abused
A lease labeled generically as a "net lease" in the broker summary turns out, on close reading, to be a single-net structure where the tenant pays only real estate tax. The landlord's reconciliation statement bills CAM and insurance pass-throughs anyway, costs the lease never actually shifted to the tenant.
Practitioner note
Never rely on a broker summary or a generic "net lease" label. Read the actual pass-through clauses to determine whether the lease is single net, double net, or triple net before scoping which cost categories belong in the audit.
Related terms
FAQ
Questions about net lease
What is the difference between a net lease and a triple net lease?
"Net lease" is the general family name. Triple net (NNN) is the specific version where the tenant pays taxes, insurance, and CAM on top of base rent. A single-net lease might only pass through property tax.
Why does the exact net lease type matter for scoping a CAM audit?
It determines which cost categories are even in play. A double net lease that excludes CAM and maintenance pass-throughs has a narrower audit scope than a triple net lease that includes them.
You know the term. Now check the math.
Get started to deliver white-label CAM audit reports under your firm brand.