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NNN Lease Analyzer

True occupancy cost for a triple-net lease, base rent plus NNN charges, escalations modeled over the full term. Year-by-year breakdown included.

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$
Taxes + insurance + CAM combined estimate
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yrs
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Enter lease details to see the year-by-year cost breakdown.

Station CRM surfaces NNN retail spaces as they become available, closings, ownership changes, and brand expansion signals across NYC. See how it works →

What is a triple net (NNN) lease?

In a triple net lease, the tenant pays base rent plus three categories of property expenses: real estate taxes, building insurance, and maintenance or CAM (common area maintenance) charges. These "nets" are charged on top of base rent, so what looks like a $45/SF asking rent can become $57 to 62/SF in total occupancy cost once NNN charges are added. In NYC retail, NNN charges typically run $12 to 20/SF annually depending on the building's tax burden and condition. The lease analyzer here calculates year-by-year total cost including escalations, so tenants and brokers can compare deals on an apples-to-apples basis. Station CRM tracks NNN retail availability across NYC as tenant closings free up space, often before listings appear publicly.

NNN leases transfer operating risk from landlord to tenant. For the landlord, this creates a more predictable net income stream, expenses that would otherwise eat into their return get passed through. That's why NNN buildings trade at lower cap rates than gross-lease buildings: the income is more reliable and requires less management.

For tenants, the key question is what you're actually signing up for. Base rent is fixed; NNN charges float with real expenses. Property taxes in NYC can increase significantly after a sale, and many leases don't cap pass-throughs. Understanding the total occupancy cost before you sign, not just the headline rent, is what this tool is built for.

What's included in NNN charges?

Typical NNN charge breakdown

Real estate taxes: The largest NNN component in NYC, often $8 to 15/SF annually. Watch for leases that pass through tax increases without a base year cap or tax protection clause.

Building insurance: Property and casualty coverage. Typically $1 to 2/SF in NYC retail.

CAM / maintenance: Varies widely. Ground-floor storefronts with no shared amenities may have minimal CAM ($1 to 3/SF). Multi-tenant buildings or properties with HVAC, lobby, or elevator maintenance can run $4 to 8/SF.

Management fee: Some leases include an admin fee (5 to 15% of CAM) on top of actual expenses. Read the lease definition carefully.

In NYC, the tax component is often the biggest variable. Properties in rapidly appreciating neighborhoods can see significant assessed value increases after a sale, and those increases flow through to tenants in NNN leases without a base year protection. Ask for the last three years of actual NNN charges, not just the quoted estimate, before signing.

NNN vs. gross lease: what's the real difference?

In a gross lease, the landlord quotes one number that includes everything, rent, taxes, insurance, maintenance. In a modified gross or NNN lease, base rent is lower but the tenant pays some or all operating costs on top. Neither structure is inherently better; it depends on the actual numbers.

Here's a comparison that comes up regularly in NYC: a gross lease at $80/SF versus a NNN lease at $62/SF base with $15/SF in NNN charges. The NNN deal looks cheaper until you add the charges, then it's $77/SF, which is close. But in a gross lease, the landlord absorbs tax increases; in the NNN lease, they're your problem.

Use the retail space cost estimator to factor in buildout and escalations when comparing options.

NNN lease questions

How do I calculate the true cost of a NNN lease?
Add base rent per SF plus NNN charges per SF to get first-year total occupancy cost, then multiply by square footage. For multi-year analysis, apply the annual escalation rate to base rent each year, NNN charges escalate separately based on actual expense changes. A 2,000 SF space at $50 base plus $14 NNN runs $128,000 in Year 1. With 3% annual bumps, Year 5 base rent is $56.28, making total occupancy $141,560. This tool builds the full schedule so you see exactly what you're committing to.
What are typical NNN charges in NYC retail?
In NYC, NNN charges typically run $12 to 20/SF annually, though this varies significantly by neighborhood and building type. Tax-heavy areas like prime Manhattan can push NNN charges higher. Ground-floor storefronts in residential buildings often have lower charges than commercial buildings with shared systems.
Can NNN charges increase during the lease?
Yes. NNN charges are typically based on actual expenses, they can increase if property taxes rise, insurance costs climb, or the building incurs major maintenance. Many leases don't cap NNN increases. Tenants should negotiate a base year and an annual cap on CAM increases (5 to 10% is common) and require annual reconciliation statements.
What is the difference between NNN and NN (double net)?
In a double net (NN) lease, the tenant pays taxes and insurance but the landlord covers maintenance and structural repairs. In a full NNN lease, the tenant covers all three. In an absolute NNN or "bondable" lease, the tenant covers everything including structural repairs and roof replacement, common in single-tenant retail like fast food or pharmacy locations.
How do NNN escalations work?
Base rent typically escalates by a fixed annual percentage (2 to 3% is standard) specified in the lease. NNN charges escalate separately based on actual expense increases, they don't follow the base rent schedule. Total occupancy cost therefore increases at a different rate than base rent alone, which is why you need to model both in a multi-year projection.

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