What is a "triple net lease"?

A "triple net lease" is characterized by the lessee assuming responsibility for all operating expenses associated with the property. This includes property taxes, insurance, and maintenance costs, in addition to the base rent. In this arrangement, the landlord (lessor) receives a relatively stable income stream without needing to manage the ongoing expenses related to the property.

This type of lease is particularly common in commercial real estate, where tenants can have greater control over their usage of the property and its associated costs. By assuming these responsibilities, lessees often negotiate lower rental rates, as the risk of fluctuating expenses transfers from the lessor to the lessee.

The other choices describe variations of leasing agreements where the responsibilities may lie predominantly with the lessor or involve shared expenses, which do not align with the defining characteristics of a triple net lease.