Landlords prefer NNN leases because they eliminate some of the unknown financial risk associated with commercial real estate. If taxes or insurance increase or if unforeseen maintenance costs are incurred, the tenant is responsible for bearing the burden of the extra effort. It`s good for owners and especially nice for investors. All commercial real estate leases fall somewhere in the spectrum with absolute net leases on the one hand and absolute gross leases on the other. Most leases are somewhere in the middle and are considered a hybrid lease. By passing these expenses on to the tenant, the landlord and their investors know exactly how much income they can expect each month. .

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