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  • Triple net lease?

    The building I'm looking at is $1.50 a square foot plus $.32 triple net, so $1.82. I looked up triple net lease and I'm not understanding why the added $.32, why are they not just saying $1.82 triple net? I realize that it all comes down to what is actually written in the lease. From what I read triple net really isn't good for a privately owned small business. Any insight would be great!

  • #2
    Get to a lawyer that can read the paperwork and explain it thoroughly. Seriously. Asking for advice from a forum - even o d filled with knowledgeable people such as this one- is not sensible. If you are opt into your own pls e as a single business person you need to have a lawyer and an accountant that you can trust and turn to. Otherwise you are setting yourself up for some potentially serious financial issues. Build thier costs into your budget expenses

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    • #3
      If it were me, I wouldn't want a triple net lease unless the base rent was really, really low, and I was a good negotiator who could work to maximize the value for myself. I worked for someone who ran a contracting business and rented space. Property tax increased. They were responsible for part of the increase, so they wound up paying more per year.
      Are you a handy person? Can you make repairs? If you can't, you'll have to hire someone to do basic maintenance.
      It's like owning a building instead of being just a renter.

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      • #4
        I'm still 6-7 months out before I start signing any contracts. I've been calling around getting rates and this is 1 of the things I came across. I'll talk to a lawyer when I actually have something to go over. I'm just trying to understand the $.32 they are calling triple net. No harm in asking here. Thanks Emma123, I was reading about the responsibility of the property tax and didn't like that. I also read that not all triple net leases are 100% true to form and it fully depends on what's written into the lease. I'll do some more research!

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        • #5
          Triple net is very common in shopping centers with multiple tenants. It is not so common for landlord of a small single building. They usually don't include it in the quote because it can vary, be adjusted, within the limits of the lease agreement. http://www.investopedia.com/terms/n/netnetnet.asp
          Most questions regarding GroomerTALK are answered in the Board Help Talk Forum. Thanks for coming to our community a part of PetGroomer.com https://www.petgroomer.com.

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          • #6
            the $1.50 is for the rent only and you know what that amount is year to year. The .32 will vary as each year taxes, insurance, common area prices etc generally go up. So every year my rent when I had a shop went up a little bit even though the square footage rent stayed the same.

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            • #7
              Ahhhhh so I'm basically paying into their impound account but I'll never get money back from it �� I understand that, thank you! And yes admin it's in a strip mall with other units. I'll be ordering my floor plans from you shortly.

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