What is an absolute net lease?
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Also question is, what is an absolute triple net lease?
Absolute Triple Net Lease. Also known as a bondable lease. An extreme variation of a net lease, where the tenant is typically responsible for all, or most, of the risks related to the real property. A tenant is usually responsible for all the costs typically found in a triple net lease and certain additional risks.
Likewise, what does net mean in a lease? Net lease refers to a contractual agreement where a lessee pays a portion or all of the taxes, insurance fees and maintenance costs for a property in addition to rent. Net leases are most commonly used with commercial real estate.
Correspondingly, what is the difference between net and triple net lease?
A net lease is a real estate lease in which a tenant pays one or more additional expenses. A triple net lease, also known as an NNN or net-net-net lease, requires the tenant to pay rent plus all three additional expenses.
What is a quadruple net lease?
A ground lease, which is effectively a quadruple or absolute net lease, commonly stipulates that the tenant is responsible for 100% of all expenses relating to the property. franchisee), length of term remaining on the lease, underlying land value and how current lease rates compare to market lease rates.