Glossary
Lease Types
Triple Net Lease
A lease structure in which the tenant pays base rent plus three additional cost categories: real estate taxes, building insurance, and CAM/operating expenses. In a true NNN lease, tenants bear nearly all property costs beyond mortgage debt service.
Firm impact
NNN leases are where CAMAudit delivers the most firm value, because the tenant bears nearly all operating costs and the overcharge opportunities are greatest. A single NNN audit at a large retail or office location can uncover tens of thousands in billable recovery work.
How this gets abused
A retail tenant signed an NNN lease assuming they understood their obligations. The lease's CAM definition included management fees, administrative fees, reserves, and above-grade salaries totaling 22% of operating costs. None of those categories were expected.
Practitioner note
Despite the name 'NNN,' lease language controls. There is no industry-standard definition of which expenses the three nets include. Every NNN engagement requires reading the actual expense definitions and exclusion lists.
FAQ
Questions about triple net lease
Are NNN leases the most common target for CAM audit services?
Yes. NNN leases pass through the broadest expense pool and give tenants the least inherent protection. They represent the highest dollar-value opportunity for a CAM recovery service line.
Does CAMAudit handle NNN lease reconciliations?
Yes. CAMAudit runs all CAM forensic detection rules against NNN reconciliations, covering management fee caps, pro-rata share errors, gross-up violations, controllable expense caps, insurance pass-through classifications, and more.
You know the term. Now check the math.
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