What is a triple net (NNN) lease?

A lease where the tenant pays base rent plus its share of the property's common area maintenance (CAM), property taxes and insurance. It is common for retail and restaurant space.

How do I work out NNN charges per month?

Add the NNN charges per square foot a year, multiply by your square feet and divide by 12. For example, $10 per sq ft a year on 1,800 sq ft is $1,500 a month on top of base rent.

Are NNN charges fixed?

No. They are estimates the landlord reconciles, usually once a year, and they can rise. Ask for the last two years of actual charges and whether any of them are capped.

How much rent plus NNN can my business afford?

DoorWorthy plans with rent plus NNN charges at 6% to 10% of sales for restaurants and bars, and a different band for each other type of business. The rent-to-sales calculator works it out from your sales or seats.

Free calculator

What will a triple net lease cost each month?

Add the base rent and the triple net charges (CAM, property taxes and insurance) to see the full monthly cost, and the sales your business needs to carry it.

Total monthly cost$6,000a month in rent and NNN charges

$72,000 a year, or $40.00 per sq ft a year all in. NNN charges are 25% of the total.

Sales needed to carry it: $60,000 to $100,000

Where the money goes

Base rent: $4,500
CAM: $750
Property taxes: $600
Insurance: $150

Monthly sales needed at each share

$150,000$150K4%outside

$100,000$100K6%healthy

$75,000$75K8%healthy

$60,000$60K10%healthy

$50,000$50K12%outside

Blue columns are the healthy 6% to 10% band for a restaurant or bar.

How the math works

Monthly cost = (base rent + CAM + taxes + insurance, per sq ft a year) × square feet ÷ 12

Triple net charges: The tenant's share of the property's common area maintenance (CAM), property taxes and insurance, paid on top of base rent. They are usually quoted per square foot a year, like the rent.
Sales needed: The monthly total divided by the healthy occupancy share for your business type, the same band DoorWorthy reports use:
Healthy occupancy share by business type
Business type Healthy share of sales
Café or bakery 8% to 10%
Restaurant or bar 6% to 10%
Salon or personal services 10% to 15%
Retail store 8% to 12%
Fitness or wellness 10% to 15%
Another concept 8% to 12%
Estimates, not fixed: NNN charges are estimates the landlord reconciles, usually once a year, and they can rise.
Not included: Utilities, upkeep inside your space, and one-time costs such as the deposit and build-out.

Healthy occupancy share by business type
Business type	Healthy share of sales
Café or bakery	8% to 10%
Restaurant or bar	6% to 10%
Salon or personal services	10% to 15%
Retail store	8% to 12%
Fitness or wellness	10% to 15%
Another concept	8% to 12%

DoorWorthy reports run this same calculation for a real address, next to the spending, competition and rules found there.

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