Property Resource
Information about the status of the existing lease on the property (i.e., Net, NNN, NN, Gross, Absolute Net, Escalation Clause, Ground Lease).6/17/2021| Standard Value | Definition | Usage |
|---|---|---|
| Absolute Net | Also known as a bondable lease, the tenant carries every risk in addition to the costs of an NNN lease. | 4% |
| CPI Adjustment | An escalation clause/provision in a lease to adjust the amount paid by the tenant (lessee) where the adjustment will follow the Consumer Price Index... | 4% |
| Escalation Clause | A clause or provision in a lease document that set a formula for how rent will increase over time. | 5% |
| Gross | A lease agreement where the owner (lessor) pays all property changes normal to ownership. The opposite to net leases where the tenant (lessee) may... | 25% |
| Ground Lease | Typically a long-term lease of land where the tenant (lessee) has the right to develop or make improvements. | 6% |
| Net | A lease agreement where the tenant pays the real estate taxes. | 25% |
| NN | A lease agreement where the tenant pays real estate taxes and building insurance. | 8% |
| NNN | A lease agreement where the tenant pays real estate taxes, building insurance and maintenance. | 17% |
| Oral | The terms of the lease are agreed upon orally (not in writing) between the lessee and lessor. Legal restrictions around oral agreements vary from... | 6% |