Vertalis Business Law Glossary
Commercial Leases
Triple-Net Lease
Also called: NNN Lease · CAM.
By Tim Nichols
Modern Counsel for Growing Companies
In plain English
A commercial lease commonly requiring the tenant to pay allocated property taxes, building insurance, and maintenance expenses in addition to base rent. The label does not establish the precise allocation of costs. The actual lease determines exclusions, repair responsibilities, capital costs, caps, and reimbursement procedures.
Types and key distinctions
Common Area Maintenance
Expenses associated with maintaining shared areas of commercial property, often called CAM charges. A lease may allocate some of these expenses to tenants in addition to base rent. The definition, exclusions, allocation formula, caps, and audit rights determine which costs the tenant actually bears.