If you are pricing office space in the United States, sooner or later a landlord hands you a triple net lease – and the base rent on the first page turns out to be only part of what you owe. A triple net lease (often written NNN) asks the tenant to pay rent plus three extra costs on top: property taxes, building insurance, and maintenance. Miss that, and the “cheap” suite quietly becomes the expensive one.
This is a plain-English, tenant-side guide. Not an investor primer – you will find plenty of those. Here we cover what a triple net lease actually means when you are the one renting the desks: the three nets, how NNN differs from gross and modified-gross rent, what it does to your real monthly cost, and the questions worth asking before you sign.
What is a triple net lease?
A triple net lease is a commercial lease where the tenant pays base rent and a proportional share of the property’s three main operating costs – real estate taxes, building insurance, and common area maintenance (CAM). “Net” means those costs are passed through to you net of the rent, rather than absorbed by the landlord. “Triple” counts the three that get passed through.
The structure is common in retail, industrial, and standalone office buildings, and the legal term for it is simply a form of net lease. For a longer-term office, understanding NNN is as important as understanding the rent itself. If you want the wider picture of leasing versus serviced and managed space, our private office guide lays out the options side by side.
Wezoo snapshot – US private offices (all-in monthly pricing)
- 60 private offices sampled across New York, Chicago, and Los Angeles
- Monthly price range: from $530 to $20,070 per month
- Median: $1,820 per month
- Top operators: WeWork, Regus, Spaces
Every figure above is a single all-in monthly rate – the opposite of a triple net lease, where taxes, insurance, and maintenance arrive as separate charges.
The three nets: what a triple net lease makes you pay
The phrase sounds technical. The idea is simple: on top of base rent, you cover three running costs of the building, usually charged as your pro-rata share of the whole property.
Net 1 – Property taxes. Your share of the real estate taxes assessed on the building. When the municipality reassesses, your bill moves with it, so this line is rarely fixed for the life of the lease.
Net 2 – Building insurance. Your share of the landlord’s property insurance premium (not your own contents or liability cover, which you still carry separately).
Net 3 – Common area maintenance (CAM). Your share of keeping shared areas running: lobbies, elevators, parking, landscaping, snow removal, security, and general repairs. CAM is the line most likely to surprise a first-time tenant, because it is reconciled at year end against actual spend.
Landlords usually keep the roof and the structure – the big-ticket capital items – but the exact split varies by building and by market, which is why the lease wording matters more than the label.
What does a triple net lease cost an office tenant?
Add the base rent to the three nets, then divide by twelve. That is your real monthly number – not the headline rent per square foot.
Commercial NNN rates are typically quoted per square foot per year. Say a suite is 2,000 sq ft at $30/sq ft base rent, with NNN charges of $10/sq ft:
Base rent: 2,000 × $30 = $60,000/yr + NNN: 2,000 × $10 = $20,000/yr = $80,000/yr ≈ $6,667/month
The NNN load added a third to the cost. It also floats: reassessed taxes or a rough winter of CAM can push the reconciliation higher than the estimate you budgeted.
The lesson is blunt. The cheapest base rent can cost you the most once the nets land. Always ask for the current NNN estimate and the last two years of actual reconciliations before you compare two buildings.
Triple net lease vs gross lease vs modified gross
Three lease types dominate US office space. The difference comes down to one question: who pays the operating costs? A quick reference on the triple net lease structure agrees on the essentials below.
| Lease type | Who pays taxes, insurance & CAM | Rent predictability for the tenant |
|---|---|---|
| Gross (full-service) | Landlord – bundled into one rent | High – one figure, few surprises |
| Modified gross | Split – negotiated; often a base-year stop | Medium – depends on the wording |
| Triple net (NNN) | Tenant – all three, on top of base rent | Lower – nets float with taxes & actual spend |
A gross lease trades a higher sticker rent for certainty. A triple net lease trades a lower base rent for exposure to costs you do not fully control. Modified gross sits in between and is the one where the fine print earns its keep. None is “better” – each fits a different appetite for risk and admin.
When does a triple net lease make sense for office tenants?
NNN rewards tenants who want control and have the capacity to manage it. If you plan to occupy a whole building or floor for years, a triple net lease can lower your base rent and give you a say in how the property is run.
It works against you when you are small, growing, or unsure of your headcount. The reconciliation admin, the floating charges, and the multi-year commitment are real costs of their own. For teams that value a predictable monthly number and the freedom to move, a serviced or private office often fits better – our guide to serviced vs managed vs leased offices walks through the trade-offs.
All-in private offices: the alternative to NNN math
A serviced private office flips the model. Instead of base rent plus three nets plus a year-end reconciliation, you get one monthly price with the operating costs already inside. Here are three real US examples listed on Wezoo, priced the all-in way.
1. The Yard: Columbus Circle – New York
What to expect: A single-person private office a block from Central Park and the Columbus Circle subway hub. The monthly figure quoted here is all-in – taxes, insurance, and building upkeep are already inside it, not billed on top.
Operator: The Yard · From: $890/month · Capacity: 1 person · Address: 33 West 60th Street, New York
👉 Interested in a private office? Request The Yard: Columbus Circle on Wezoo
2. 625 W Adams St – Chicago
What to expect: A three-desk private office in Chicago’s West Loop, steps from Ogilvie and Union Station. One monthly price covers the space, the utilities, and the maintenance – there is no separate CAM reconciliation at year end.
Operator: WeWork · From: $860/month · Capacity: 3 people · Address: 625 W Adams St, Chicago
👉 Interested in a private office? Request 625 W Adams St on Wezoo
3. 12100 Wilshire Boulevard – Los Angeles
What to expect: A West LA private office on the Wilshire corridor with easy 405 access. The quoted monthly rate bundles the operating costs a triple net lease would otherwise pass through to you line by line.
Operator: Regus · From: $1,515/month · Capacity: 3 people · Address: 12100 Wilshire Boulevard, Los Angeles
👉 Interested in a private office? Request 12100 Wilshire Boulevard on Wezoo
Questions to ask before you sign a triple net lease
Before the ink dries, get answers to these in writing:
- What is the current NNN estimate per square foot, and what were the actual reconciled charges for the last two years?
- Is CAM capped? A cap on controllable CAM increases protects you from a runaway reconciliation.
- What exactly counts as CAM? Management fees and capital repairs are the usual gray areas.
- Who owns the roof, structure, and HVAC replacement – landlord or tenant?
- How is your pro-rata share calculated, and does it change if the building’s occupancy changes?
Want the cost of your office to be one number, not a moving target?
Triple net lease FAQ
What does NNN mean in a lease?
NNN stands for triple net – the three nets a tenant pays on top of base rent: property taxes, building insurance, and common area maintenance. A triple net lease passes those three operating costs through to the tenant.
What is the difference between a triple net lease and a gross lease?
In a gross (full-service) lease, the landlord bundles taxes, insurance, and maintenance into a single rent. In a triple net lease, the tenant pays base rent plus those three costs separately, so the total can rise if taxes or maintenance go up.
How do you calculate the real cost of a triple net lease?
Add base rent to the NNN charges (taxes + insurance + CAM), both usually quoted per square foot per year, then multiply by your square footage and divide by twelve for the monthly figure. Always check the actual reconciled charges, not just the estimate.
Is a triple net lease good for a small business tenant?
It can be, if you want a lower base rent and control over the space and plan to stay for years. For smaller or growing teams that value a predictable monthly cost and flexibility, an all-in serviced or private office is often the easier fit.
Can CAM charges in an NNN lease increase?
Yes. CAM is reconciled at year end against actual spending, so it can rise. Negotiating a cap on controllable CAM increases is one of the most useful protections a tenant can ask for.
What is a modified gross lease?
A modified gross lease splits operating costs between landlord and tenant – commonly with a base-year stop, where the landlord covers costs up to the first year’s level and the tenant pays increases above it. It sits between a gross lease and a triple net lease.
This is general information, not legal or financial advice – consult a qualified attorney, CPA or commercial real-estate advisor. Lease practice varies by market and landlord across the United States. Last updated 2026.
