For United States commercial real estate, normally the landlord, rather than the tenant, is responsible for real estate taxes, maintenance, and insurance. In a "net lease," in addition to base rent, the tenant or lessee is responsible for paying, some or all of the recoverable expenses related to real-estate ownership. As the rent collected under a net lease is "net" after expenses are passed through to tenants to be paid, the base rent tends to be lower than rent charged under a gross lease.

Net lease types include single net, double net, and triple net leases, depending on the number of items they include. The term "net lease" is often used as a shorthand expression for any of these arrangements. The three most common expenses charged back are property taxes, insurance, and maintenance, often called the "three nets".^[1] A triple net lease that includes the three nets is particularly common and is often abbreviated in writing as "NNN lease" but is still pronounced as "triple net lease".^[2][3][4]

NNN Properties is a passive investment, and NNN Properties are ideal investments. NNN properties provide many of the same benefits as investing in other real estate classes. For farming families who sell highly appreciated real estate and who want long-term, steady income with little or no management responsibilities, NNN lease properties can make compelling sense when utilizing a 1031 Exchange.