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  4. /Double Net Lease (NN)

Double Net Lease (NN): CAM Audit Guide

Last updated: April 2026

By Angel Campa, Founder

Double Net Lease (NN) tenants face specific billing risks tied to how expenses are allocated and reconciled. The most common error appears in the section below. CAMAudit runs 14 forensic detection rules on your reconciliation statement to identify every recoverable dollar.

Most Common Overcharge

Landlords slip structural repair costs into inflated insurance deductibles, particularly roof repairs. A landlord files an insurance claim for a roof leak, accepts a payout, but then passes the high deductible through to tenants as an "insurance expense." Tenants effectively subsidize capital repairs through a non-CAM channel.

What Is a Double Net Lease (NN)?

A commercial lease structure where the tenant pays base rent plus their pro-rata share of property taxes and building insurance premiums. Unlike a Triple Net (NNN) lease, the landlord in a Double Net (NN) lease retains financial responsibility for common area maintenance, structural repairs, parking, landscaping, and all ongoing property upkeep. The tenant bears only two of the three "net" charges: taxes and insurance.

Double Net Lease (NN) Expense Pass-Throughs

Tenant pays: base rent, property taxes (pro-rata), and building insurance premiums (pro-rata). Landlord pays: CAM expenses, structural maintenance, roof, parking lot, landscaping, janitorial of common areas, and all ongoing operating costs beyond taxes and insurance.

Double Net Lease (NN) CAM Calculation & Billing

No traditional CAM reconciliation applies. Tenant receives annual property tax bills and insurance premium invoices, and pays their pro-rata share directly or through the landlord. Billed on the tenant's fractional share of the total municipal tax assessment and the building's insurance policy premium.

Red Flags to Watch

  • ▶Insurance deductibles spiking year-over-year without a change in carrier or policy
  • ▶Insurance invoice line items including "deductible recovery" or "claims adjustment fee"
  • ▶Property tax bills that include special municipal assessments beyond standard ad valorem taxes
  • ▶Late payment penalties from the taxing authority passed through to the tenant
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Check Your Double Net Lease (NN) for These Overcharges

Upload two PDFs. 14 detection rules. Under 15 minutes. Free.

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Audit Focus

Audit property tax invoices against the actual municipal assessment. Verify that the insurance invoices reflect the actual policy premium with no markup or hidden fees. Challenge deductibles that are unusually high or applied to claims that cover structural elements (roof, HVAC) the landlord should bear under a NN structure.

Common Industries

  • →Industrial / older retail
  • →Pharmacy chains (standalone)
  • →Single-tenant retail
  • →Warehouse / distribution

Explore Other Lease Types

Triple Net Lease (NNN)Single Net Lease (N)Modified Gross LeaseFull Service Gross Lease (FSG)Absolute Net LeaseGround LeasePercentage LeaseIndustrial Gross LeaseRetail LeaseOffice LeaseMedical Office LeaseRetail Net Lease (NNN Retail)Flex Space LeaseBondable Net Lease
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Don't Overpay on Your Double Net Lease (NN)

Upload two PDFs. 14 detection rules. Under 15 minutes. Free.

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Related Guides

NNN LeasesOverview
The Commercial Tenant's Guide to Triple Net (NNN) Leases
NNN LeasesOverview
NNN vs. Gross Lease: What Tenants Actually Pay [2026]
NNN LeasesOverview
Triple-Net Lease Overcharges: Patterns and Recovery

Explore Related Resources

Tenant TypePharmacyLease ClauseAudit Rights ClauseLease ClausePro-Rata Share Definition ClauseLease TypeTriple Net Lease (NNN)Lease TypeAbsolute Net LeaseScenarioMulti-location tenant: same CAM overcharge pattern across multiple properties

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Related Resources

ResourcesCAM Audit by Tenant TypeToolsFree CAM Audit ToolsGlossaryCAM GlossaryToolsPro-Rata Share Calculator

Related Articles

  • NNN Lease Tenant Guide
  • NNN vs. Gross Lease Comparison

Frequently asked questions

Need to extract lease terms before your audit?

A CAM audit is only as accurate as your lease data. lextract.io extracts 126 structured fields from any commercial lease PDF: CAM definitions, pro-rata share, caps, base year, and audit rights. So you have the exact terms your landlord is supposed to follow.

Go to lextract.io

This page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.