The net rental income from Partnership A is deemed QBI. If, for the purposes of the Loan, the rental under a lease is on another basis (such as a gross rental basis. Triple Net or NNN leases typically have a base rent price with the tenant paying their proportionate share of operational expenses such as property taxes (“N”), insurance (“N”) and common area maintenance (“N”) on top of that base rental amount i. Landlords in triple net leases can take small comfort from the fact that failure to meet the safe harbor does not preclude a rental real estate enterprise from being a section 162 trade or business, as such a determination is based on all facts and circumstances. NNN stands for Triple Net rent. S. BETWEEN . Investing in property that is leased to credit tenants on a long-term, triple-net basis is an intelligent way to preserve capital, while receiving steady cash flows and achieving potential appreciation in the long-run. Management responsibilities are reasonable, and therefore landlords are able to learn and mature with this type of income investment. A triple net lease, also known as an NNN lease, is a lease agreement in which the tenant is responsible for all the ongoing expenses of the property, including property taxes, insurance, maintenance costs, and paying the rent and utilities associated with the property. When we took over the building, the tenants were paying NNN costs of $1. Tenants under a triple net lease also pay for property maintenance and some repairs. Lease Rates Explained . The rate is typically calculated on a square footage basis over a period of time and is generally billed monthly. A tenant strapped for cash (possibly due to rising insurance and tax rates) might let some of the maintenance slip. Similarly, each of the six atoms centered on a face is only half-owned by the cell. A Triple Net Lease (NNN) is a type of lease agreement commonly used in commercial real estate, where the tenant assumes responsibility for property expenses in addition to the base rent. What Is a Modified Gross Lease? While less common, some properties advertise a modified gross lease. Therefore, using. Under the triple net lease terms, Starbucks will pay for all of the expenses for the next 15 years. 1. ” If not shown, you might have to ask the landlord or agent how much the pass-through expenses cost. In real estate, "NNN" is an abbreviation for the phrase "triple net lease. Much progress has been made in elucidating the structure of collagen triple helices and the physicochemical basis for their s. Learn what NNN means in a commercial real estate environment, how this kind of commercial lease differs from other lease arrangements, and what the advantages of leasing a triple net property are. Per Real Capital Analytics, 1H18 transaction volumes (for retail NNN assets above $2. In an NNN lease, the tenant is typically responsible for paying property taxes, property insurance, and property maintenance costs, in addition to their. 3 million compared to $97. The “N” stands for “net of” or exclusion of certain expenses which typically include utilities, property taxes, building insurance. One of the most common commercial cannabis lease structures is what is commonly referred to as a “triple net” or “NNN” lease. Starbucks would be paying for your insurance, your taxes, all the building repairs, the parking lots, windows, roof, electrical, and more. 94 per land square foot. The tenant is responsible for paying rent as well as all expenses. The board voted. They can be passive (by default), recharacterized as nonpassive (e. 5 percent cap, you know that you can count on $150,000 per year for the life of the lease. 9 million square feet and are located in 34. WPC also offers investors a 50 basis points. These are the most common and popular net leases for industrial and retail properties because the expenses are based on a pro-rata share, or the amount of space a tenant takes up in their building. Simply speaking, this results in paying 80 cents on the dollar. See Form 7203 and its separate instructions, which have been developed to replace the 3-part Worksheet for Figuring a Shareholder’s Stock and Debt Basis and its related instructions formerly found in the Shareholder’s Instructions for Schedule K-1 (Form 1120-S). Accidental death & dismemberment (AD&D) insurance provides coverage if you lose a limb or your death is the result of an accident. The triple net lease is a lease agreement between a tenant and landlord where the tenant agrees to pay all of the expenses of the property. They can be passive (by default), recharacterized as nonpassive (e. "As a result, both parties have entered into a lease agreement for a period of 10 years on a triple net basis for Menara Maybank, concurrently with the tenancy agreement for Menara Merdeka 118. The lessee agrees to pay rent, utilities, and all of the property’s operating expenses. The rent is higher on a gross lease, because the landlord is entirely responsible for the property's expenses, such as taxes and repairs. A sale and triple net leaseback can enable a company to release cash tied up within real estate (whether that be a single asset or a pool of assets; for a single asset class or multiple asset. By. Tenant A will pay $4,700/month and Tenant B will pay $9,400 per month. Real estate investment trusts (REITs) Real estate investment trusts (REITs) are funds that you can buy shares from on the open. Common area and routine building maintenance. The Internal Revenue Code is a labyrinth — you might t hink that you have visited every room only to discover an opening that leads to yet another maze to explore. A triple net lease (NNN) benefits commercial landlords by reducing the potential risk that comes with a commercial lease. Net leases can also go by the name of Triple Net Leases or NNN Leases. List your company’s current and expected future space needs, and determine your budget and preferred location. The owner pays for the property's insurance, repairs, maintenance, and other costs. Step 12 — Summarize the obligations that come with the lease. Things would run perfectly the same as it was before the transaction. • This site is leased on an absolute triple-net basis with a 20 year initial term that expires in September of 2019. 1 of. A triple-net (NNN) commercial lease agreement is a contract between a landlord and a tenant that pays for the three (3) ‘nets’, property insurance, real estate taxes, and common area maintenance (CAM). Learn how it reduces risk for landlords and assigns responsibility to tenants. Basically, the tenant is paying only for their use of the property. Both WPC and NNN are triple net lease REITs, which means that the vast majority of their properties are single tenant free-standing real estate. The strength of individual NNN opportunities is largely dependent on the quality of its tenant and lease profile, as well as the underlying asset’s characteristics (i. The triple net, or NNN, lease used in commercial real estate rentals covers real estate taxes, insurance and maintenance. However, a NNN amount per year of $10 would yield $10,000 a year ($10/sqft. However, NNN leases are often used for single. A triple net (NNN) lease requires the lessee (tenant) to pay three required expenditures related to the rented real estate: maintenance, insurance, and taxes. This includes maintenance, repairs, property taxes, insurance. Collagen is the most abundant protein in animals. NNN Leases typically have clauses that exclude major maintenance from those. These expenses are in addition to the cost of rent and utilities. Your chart of accounts is like a cheat sheet for doing your books. Modified Gross Lease: A modified gross lease is a type of real estate rental agreement where the tenant pays base rent at the lease's inception but in subsequent years pays the base plus a. If a NNN lease is used in a multi-tenant building, the lease will divide the costs on a per-tenant basis. Add the totals for property taxes, insurance, maintenance and common area upkeep and then divide the sum by 12 to arrive at a monthly cost. For example, consider a manufacturing company that leases a building from its shareholder in a triple net lease, and the property’s operating statement has rental income and interest expense. Common basis increases include capital contributions, ordinary income, investment income and gains. Dollar Tree is an attractive tenant for the Net Lease Investor who prioritizes a higher cap rate. These NNN expenses are the real estate taxes, the building insurance, and the maintenance expenses. Lease contracts may contain nonlease components that should be accounted for using other accounting models (e. A triple net lease is one of the more common lease structures that you’ll find in commercial real estate. 90) per square foot of Rentable Area per month, on a triple net basis for the first twelve (12) months and shall be adjusted as set forth in. Landlords may pass on any number of expenses in a modified gross lease, such as utilities, common area maintenance, janitorial, etc. With a triple net lease, the business tenant is responsible for most costs, including the base rent, property taxes, insurance, utilities and maintenance. The owner pays operating expenses associated with vacant space. Between AD&D and term life, term life covers more. A triple net lease (triple-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the. IRC Section 163 (j) guidance affects real estate industry. , location and demographics). Video Description. How to Calculate Lease Rates – NNN – Full-Service Gross – Modified. Operating expenses for the property are currently $6 per square foot per year. In a triple net lease, the tenant pays the base rent to the landlord, plus three key expenses: the cost of common area maintenance, property taxes, and building insurance. A lease-leaseback transaction should be accounted for as a net transaction. Triple Net Lease (NNN Lease) : In a triple net lease , the tenant pays a base monthly rental amount plus all three of the major operating expenses categories. This will create millions of new jobs, significantly lift global economic growth, and achieve universal access to electricity and clean cooking worldwide by the end of the decade. Whether the tenant pays utilities with an N agreement varies. A lessor’s aggregate net investment should be presented separate from other assets on the lessor’s balance sheet. Therefore, the base rent amount per year for a 1,000 square foot space is $30,000 a year or $2,500 a month. The owner usually maintains responsibility for repairs, including major and structural repairs. Overall, this is considered to be a turnkey. For example, an investor is weighing two investment opportunities that have the exact same purchase price. The Act retroactively increased the section 163 (j) limitation to 50% of ATI (up from 30%) for 2019 and 2020, for taxpayers other than partnerships. Gaming and Leisure will lease the property to Queen on a triple-net basis for about $14 million annually, with the initial lease term set at 15 years with options to renew for four successive five. The accounting method you choose will depend on how you’re most comfortable tracking and reporting income. In most NNN leases, these costs, along with base rent, are charged to tenants over. Examples of Triple Net Expenses in a sentence. With 306 properties spanning all areas of the triple-net space, the REIT boasts of a 99. ; Duple meters have groupings of two beats, triple meters have groupings of three beats, and quadruple meters have groupings of four beats. CAM caps in triple net leases can be cumulative or compounded (also referred to as non-cumulative), and calculated either year over base or year over year. These expenses include property taxes, property insurance, and maintenance,. Depending on the commercial retail. Net lease requirements are most commonly used. Example: If an investor is selling a triple net shopping center for $1,000,000, and has a net adjusted basis of $500,000, the investor will have a gain of $500,000 upon the sale of the property. However, now that the commercial property is no longer considered to be a triple net leased property, the owner will be able to enjoy the 20% QBI deduction of $30,000 and pay income tax on the net. 1 Lessors: Sales-type and direct financing leases. 35 million-square-foot property was 98 percent leased to 15 tenants, according to the DBRS report. Triple Net Most leases for single tenant retail properties are triple net, often shown as “NNN”. 8% net investment income tax imposed by Sec. 1 million in first quarter 2022. 21x to approximately 1. [email protected] Net Lease: A commercial real estate lease agreement in which the tenant is required to pay property taxes in addition to rent. To calculate the triple net lease price for each tenant in your property, add this monthly cost total to the monthly rental rate per square foot and multiply. A lease in which the tenant is responsible for costs in addition to rent. Building insurance. In other words, tenants are required to pay all. Triple Net or Net Net Net (NNN) leases are a commercial real estate lease structure that pushes the responsibility of the additional rent expenses related to operating the property, such common area maintenance, property taxes, and building insurance, onto the tenant or lessee. , net rental income. original purchase price of $3MM creates a step-up in basis. A triple net lease is a real estate agreement where the tenant pays multiple property-related expenses in addition to the rent. Triple net leases are common with large single tenant properties such as national restaurant chains and are popular because they offer a turn-key investment. In this. Gross Lease: A gross lease is a type of commercial lease where the landlord pays for the building's property taxes, insurance and maintenance. These costs are then factored into the lease rate charged to the tenant. With the triple net lease agreements, owners can pass on this spending to the tenants. The three most common expenses charged back are property taxes, insurance, and maintenance, often called the "three nets". Starbucks would be paying for your insurance, your taxes, all the building repairs, the parking lots, windows, roof, electrical, and more. Updated March 24, 2021. Dollar Tree is a chain of discount stores that sell all items for $1. There are three types of net leases where the tenant pays the monthly base rent plus ‘extras’: Single Net Lease – property tax is paid for by the tenant. The net operating income is defined as the total operating income for a property minus the total operating expenses for a property. Triple net lease, or NNN lease. Cons: metals w/ unpaired e. Common area maintenance, often referred to as “CAM,” are all of the expenses incurred of maintaining the common areas of the property,. Triple net (NNN): the tenant pays rent, utilities, property taxes, insurance, and maintenance. However, properties leased on a triple net basis were not eligible to rely on this safe harbor. However, instead of including all taxes, insurance, and common area maintenance (CAM) in the rent amount, the tenant pays an equal portion based on square footage. g. or annual basis based upon their prorata share of the premises. The farmland is predominantly concentrated in locations where farmers are able to grow either fresh produce annual row crops (e. Triple net leases are traditionally found in retail and standalone properties. The structure of triple net leases usually has lower base rates but is more profitable. ). With that, they deal with the maintenance costs for the property. LTC Properties Inc. 775. When it comes to the QBI deduction, however, landlords who hold triple net leases are not considered to be. Commercial Triple Net Lease 2010 Page 2 of 9 Should Tenant comply with all of the covenants and conditions of this Lease, the Security Deposit. This is also a major pro when considering investing in a triple net lease property, as it provides a steady, predictable revenue stream on a monthly basis. Carey announced the spinoff of its office assets into a publicly traded REIT called. Under a triple net lease the tenant will be responsible for paying all operating expenses and therefore all increases year to year. As the original owner of the property, it makes perfect sense to continue to lease on triple net basis. It sweetens the sale by agreeing to a long-term lease with the REIT on a triple net lease basis. Tenant s Broker: Cornish & Carey Commercial. Common Area Maintenance. Example: Building maintenance costs are $20,000 per year. Triple Net, often abbreviated as “NNN,” is a type of lease structure where the tenant or lessee agrees to pay additional expenses related to the operations of the property, including common area. The tenant must provide and maintain general liability insurance for the term of the lease. The NNN indicates that it’s a triple net lease. $0. Common area maintenance (CAM) With triple net leases, the tenant incurs all expenses related to the property. With a full-service lease, the tenant is generally still responsible for any increase in the operating expenses in year two of the lease and beyond. The tenant is responsible for net property taxes, net insurance, and net maintenance for the. and more. Of these four types, the triple net lease is particularly common with investors seeking the benefits of real estate investment, but not the hassle of managing the property on a day to day basis. A triple net lease (triple-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three "nets") on the property in addition to any normal fees that are expected under the agreement (rent, utilities, etc. Evaluate your business needs. Typically, the Operating Entity leases the real property from the Real Estate Holding Company on a “triple net” basis, and the Real Estate Holding Company has little actual business operations, other than holding the real property and collecting rent. In this type of commercial real estate rent, you pay the amount listed and you also have pay additional costs (usually Operating Expenses) on top of that. One “N” stands for property taxes, one for. This can happen monthly, quarterly, or on an annual basis based on pro rata share of the space. May 3, 2018 1 min read. A triple net lease is one of the more common lease structures that you’ll find in commercial real estate. 4. After all, you'd rather pay $21 per square foot in rent than $33, right? However, if the $33 lease is a gross one and the $21 is a triple net lease in a building with $13 in CAMs and other expenses, the gross lease is actually less expensive. The tenant in a triple net leased asset covers operating expenses. In normal times the REITs of this sector tend to have 100% rent collection and no problems, but. Unlike a single net lease, which only requires the tenant to pay. Most retail and industrial spaces are leased on a “triple net basis. reporting cash flows on a net basis 22-24 foreign currency cash flows 25-27 extraordinary items 28-29 interest and dividends 30-33 taxes on income 34-35 continued. Landlord s Representative. Rent Increases: Often, triple-net leases contain contractually mandated rent increases at regular intervals over the lease term. The occupants are usually. This type of arrangement stems from industrial real estate properties, where tenants with different uses require distinct building services and dedicated utilities. Almost every human interaction has something to do with finances: buying in a shop, providing services, borrowing, even going on a date. Gross Lease. The structure of triple net leases usually has lower base rates but is more profitable. Shop now. EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES, A New York corporation, AS LANDLORD . Ninety-four percent of the company’s QSRs are franchised through 350 franchise organizations. However, properties leased on a triple net basis were not eligible to rely on this safe harbor. 3 billion all-stock deal. Base Amount = Rent per square foot x Square footage = $30/sqft x 1,000 sqft = $30,000 a year or $2,500 a month. With a triple net lease, tenants are responsible for 100% of operating costs on top of the rent they owe. Other calculations and variables also affect a triple net investment’s outcome, including the cap rate spread. Triple net” properties (also known as NNN properties, short for Net Net Net) are a type of commercial real estate in which the tenant is required to pay the landlord’s cost in addition to the monthly rent. The triple point. For example, the tenant in a leased property is required to pay the rent, insurance, maintenance, and property taxes. Your total monthly rental income drops $900, from $15,000 to $14,100. 1,2 The company has an S&P Global rating of BBB (August 2021) and a Moody’s bond rating of Ba2 (March 2021). Rental real estate activities are found in several of the labyrinth rooms of the Code. These expenses are commonly referred to as operating expenses. /2 + . This is also by no small margin as the next highest yield is a cool 340 basis points. (i) Consists of property the adjusted basis of which exceeds its fair market value on the date of the distribution and money; (ii) Is a distribution to which § 1. Suppose the owner has exhausted the property's depreciation. Information is based on data. That's why triple net leases are more common for longer-term leases spanning at least five to ten years. S. Professional representation in lease negotiations can serve both parties. 199A allows taxpayers other than corporations a deduction of 20% of qualified business income earned in a qualified trade or business, subject to certain limitations. Triple-net properties hold the tenant or lessee responsible for costs on building insurance, maintenance, and real estate taxes in addition to all other typical fees. Net Lease: A provision that requires the tenant to pay a portion or all of the taxes, fees and maintenance costs for the property in addition to rent. That's the best part about a triple net lease. 98) What this means is that there are a number of spaces available in this building, ranging from 829 square feet (I’ll abbreviate this “sf” for simplicity) to 2348sf. However, properties leased on a triple net basis were not eligible to rely on this safe harbor. g. 1368–1(d)(1) applies; and (iii) Exceeds the amount of the corporation's AAA properly allocable to that distribution. " But the firm's new project. Three-phase electric power (abbreviated 3φ) is a common type of alternating current (AC) used in electricity generation, transmission, and distribution. By: Jason Schneider, CPA/Partner, Osborne Rincon CPAs. The tenant’s responsibilities include three nets: The landlord covers structural issues and some areas. These terms are used interchangeably and mean the same thing; the Basic Rent is net to the landlord. It also details some of the benefits of a Delaware Statutory Trust vs. The type of leases in place at a building can shift property financials considerably. On our lease, the landlord must figure the expenses and send a report to the tenants every year. The grand total is then (8 × 1/8) + (6 × ½) = 4 atoms per unit cell. Rising property taxes lower the internal rate of return (IRR) of gross lease properties. If there’s a hike in taxes or insurance, the tenant rather than the owner assumes the additional financial liability. This is a basic overview of each of these types: NNN – Triple Net –This type of lease rate includes the base rental rate plus the three N’s. Focus on the Market: Triple Net Lease or NNN Properties. Proc. Why Single Tenant Triple Net Leases Are Perfect for Generating Passive Income. A triple net lease, or a net lease, is one of the most common lease structures. Report #6 – Triple Net Lease Real Estate Partnerships (Released December 2, 2022) Includes 12 partnerships that held investments primarily in income producing commercial and industrial real estate properties that. Under the triple net lease terms, Starbucks will pay for all of the expenses for the next 15 years. Princetown's board of directors recently learned that Merryvale is bankrupt. NNN stands for the three “nets” in the lease: Common area maintenance (CAM) Property taxes. Lessee shall be entitled to possession and occupancy of the leased premises on February 1, 2012 (the “Occupancy Date”); provided that this Lease Agreement has been executed by all parties and that the payment of the first month’s rental rate for all units for February-2012, the Triple Net Expenses for all units. The net operating income is useful because it describes a property’s ability to generate income without considering its capital structure. These costs are usually estimated for the year and incorporated into the rent on a monthly basis. In this case, the tenant is only expected to pay property taxes in addition to rent. The primary advantage of a triple net lease to you as tenant is lower rent. Financial advisory and wealth management firm Geller & Company rounds out the top three with 126,000 square feet on the 15th through 18th floors. ★★★★★. The Triple Net subsector of REITs is broadly opportunistic. So, the tenant pays a lump-sum amount, and the landlord manages the payment for the. The first major problem is a horrid arrangement known as the “triple-net-lease,” which appears to have existed since the beginning of time, back when what you built on the land —say, a car wash — might be worth more than the actual land itself. [1] A triple net lease that includes the three nets is particularly common and is often abbreviated in writing as " NNN lease " but. Real estate changes hands all the time. They acquire and primarily lease properties to single tenants on a triple-net, long-term basis. Taxes for any fractional calendar year. 5% of the unadjusted. TRD Staff. 25% of W-2 wages plus 2. However, the landlord is responsible for taking care of the roof and structure. In return, you save out-of-pocket expenses of $900/month for property taxes. Current ‘‘market’’ rent is $20 per square foot on a triple net basis (for leases signed today). However, NNN leases are often used for single. us Leases guide 2. Historically, triple net refers to leases where a tenant rents an entire freestanding commercial building and pays for all property expenses. This includes standard property repairs. Ask them what they are doing to combat the triple planetary crisis – tell them it is important to you and your peers. 50 for property taxes, . The single most important principle of wealth management is to preserve one’s capital and protect it from loss. What Is a Triple-Net Lease? A triple-net lease, also referred to as a net-net-net lease and NNN lease, is a lease agreement where the lessee (a single tenant) is responsible for paying the lessor (landlord) on a net-net-net basis for the following: real estate taxes; insurance; and; property maintenance. The net-net investing method focuses on current assets. eligible for the Section 199A tax break. For example: say the Office Space listing you’re interested in says the rent is $24. Section 2. In addition, E&P of a corporation is adjusted for distributions or exchanges to which Sec. tenancy in common. Sales volumes have more than doubled since 2011, while cap rates have fallen by about 130 basis points in that time. 1. GIVE AAA—STARTING AT $49. A single net lease is a form of pass through lease in which. Historically, triple net refers to leases where a tenant rents an entire freestanding commercial building and pays for all property expenses. A triple net lease, also known as a net-net-net or NNN lease, insulates the landlord of the obligation to cover all expenses mentioned above such as property taxes, insurance premiums, utilities,. 368(a)(1)(D) are not met. Triple net lease quotes. Examples of Triple Net Expenses in a sentence. (Section 5. There is some intermediate distant, generally a bit longer than 0. net lease continues to provide meaningful yield premiums = 75 to 100 basis points wide. The properties are offered as highly leveraged zero cash flow investments, with attractive, assumable loans on each property that fully-amortize prior to the expiration of each lease. This type of. Known as an NNN, the lease details the rights and responsibilities of the tenant and the landlord. January 1, 2023. A conventional triple net lease has a tenant being responsible for property taxes, insurance premiums and property maintenance costs. In other words, NNN collects a base rent. 00 per square foot modified gross, net of janitorial. As we’ve seen throughout this article, the modified gross lease is a lease structure where the landlord and the tenant both share the cost of operating expenses. eligible for the Section 199A tax break. g. Since. A triple net lease changes the nature of a real estate investor’s rental property holding from business ownership to passive investment, making the taxpayer ineligible for the popular Qualified Business Income – or 199a – deduction. Tenant Pays the Operating Expenses. Perhaps another post? Reply. 162 trade or business. 2020-1960. Compound meters are meters in which the beat divides into three and then further subdivides into six. Triple net leases are primarily based on the idea of triple net expenses. The deduction is limited to the greater of (1) 50% of the W-2 wages with respect to the trade or business, or (2) the sum of 25% of the W-2 wages, plus 2. The landlord "nets" the base rent, with no obligation to spend money on property operations. As its name suggests, a triple net lease requires tenants to pay property taxes, insurance premiums, and maintenance fees — on top of rent. A triple net lease agreement form is a document used for the leasing of commercial real estate. us Leases guide 2. 1. Landlords in triple net leases can take small comfort from the fact that failure to meet the safe harbor does not preclude a rental real estate enterprise from being a section 162 trade or business, as such a determination is based on all facts and circumstances. P. Purchasing a NNN lease can also defer capital gains and. In one example, a landlord constructs a building and leases the entire building to a single tenant on a triple net basis whereby the tenant is responsible for all costs relating to the building. 22 Jan 2021 • 3 min read. This type of arrangement stems from industrial real estate properties, where. Also, a tenant can not claim rent losses as business losses. Despite its popularity, the triple net lease structure is still commonly misunderstood. It examines their potential for external growth and for internal growth. The tenant pays their pro rata share of the property taxes, property. In a single air lease, the tenant pays a lower basis renten in addition to property taxes. 1411, establishing real estate professional status does not automatically permit an individual to treat his or her rental real estate activities as nonpassive. 14, 15Exponential smoothing is a time series forecasting method for univariate data that can be extended to support data with a systematic trend or seasonal component. 82 million basis in 88% of the outstanding stock of Merryvale Corporation. Your tenant must provide a certificate of liability insurance to the landlord. 22 Jan 2021 • 3 min read. 5%. For a lessor, there might be problems with the building falling into disrepair. Formerly known as National Retail Properties, NNN REIT (NYSE:NNN), is, as its name suggests, a REIT focused on properties leased out on a triple-net basis. The added expenses include maintenance charges,. To determine the triple net lease amount for each renter, add those monthly expenses and the monthly rental per square foot charges and multiply it by the number of square feet a renter is leasing. 2 of. 00 + . Triple-Net. , roof, structure, parking lot) costs of the property. For example, volume increases with temperature for most substances. The "step-up in basis" concept is a vital aspect that real estate. Tax Savings from a 1031 Exchange. For a QSR with a basis of $1. Here is a List of Items that can be Depreciated: Improvements to the property such as new septic systems or an electrical system overhaul are also included, as are landscaping improvements and legal fees (if separated from the original purchase price).