The Direct Answer
NNN is a description of how a lease allocates expenses. It is not a complete price. Add base rent to the charges the proposed lease actually assigns to you, then examine repairs, capital work, increases, and reconciliation provisions.
Translate the quote into a monthly budget
First confirm whether the quote is expressed per square foot per year or in another period. Then confirm the square footage on which charges are calculated. Use the rentable area specified by the proposal rather than assuming it equals the area your staff can use.
The SEC describes triple-net leases as arrangements in which tenants typically pay ownership-related costs such as taxes, insurance, utilities, and maintenance. The executed agreement determines the actual allocation. A label on an advertisement does not settle the roof, HVAC, structural, or capital-replacement responsibilities. See source 1.
Hypothetical example. For 2,000 SF, base rent of $24/SF/year equals $4,000 monthly. Estimated additional expenses of $8/SF/year add about $1,333 monthly. The combined estimate is about $5,333 monthly. Utilities, improvements, deposits, and other lease obligations remain separate unless the proposal includes them.
Ask what the additional expense figure contains
| Item | Question to ask |
|---|---|
| Property taxes | Which bill, assessment period and allocation support the estimate? |
| Property insurance | Which coverages are reimbursed, and how are deductibles allocated? |
| Common area maintenance | Which services, administrative charges and management fees are included? |
| Repairs and replacements | Which items are landlord obligations, tenant obligations or reimbursable expenses? |
| Utilities | Are they separately metered, allocated or included? |
Request the current budget and available prior reconciliations. Ask the landlord to explain each allocation, particularly where the building has several tenants or different property uses. Keep the question specific: which expense, which amount, which period, and which lease provision?
Understand estimates and reconciliations
Read how the lease treats the difference between billed estimates and actual expenses. Identify the reconciliation period, supporting records, payment deadline, and any tenant review rights. Ask what happens to an overpayment and what happens if the landlord bills an expense after the lease ends.
A proposal using the word “estimated” should not be treated as a fixed expense cap. If there is a cap, ask which costs it covers, how it is calculated, and which costs are excluded. Have counsel reconcile the business understanding with the actual clause.
Separate maintenance from major capital work
Create a responsibility schedule for the roof, structure, parking lot, HVAC, plumbing, electrical systems, and interior improvements. For each item, distinguish inspection, routine maintenance, repair, and replacement. Ask whether an expense may be passed through directly or amortized over time.
If an HVAC unit is old, the practical question is who must pay when it needs replacement and what condition the landlord must deliver at commencement. Read delivery obligations and warranties alongside the maintenance clause. A general promise of a “NNN lease” does not answer either question.
- Who owns and maintains each major system?
- What condition must the premises be in at delivery?
- Who pays for required code work related to your use?
- Are capital charges excluded, capped, or amortized?
- Do any guarantees continue after assignment or lease expiration?
Include costs outside the rent calculation
Build a separate opening budget for deposits, design, permitting, improvements, equipment, signage, moving, and professional review. Confirm which work is included in a tenant-improvement allowance, how reimbursement occurs, and whether payment requires lien waivers or other documentation.
Set the expected possession date beside the rent commencement date. Ask what occurs if work or approvals take longer than expected. Have the contractor, architect, permitting authority, and attorney address their respective pieces rather than relying on a leasing headline for the opening schedule.
Use the current Florida rental-tax rule
Florida repealed the state sales tax and associated discretionary sales surtax on qualifying commercial rental periods beginning on or after October 1, 2025. Earlier rental periods remain subject to the applicable rules, even if paid later. The Department of Revenue also lists excluded categories, including certain parking, boat and aircraft storage, and transient accommodations. See source 2.
This repeal does not eliminate property taxes or the reimbursement of taxes assigned under a lease. Do not confuse sales tax on qualifying commercial rent with the real estate tax expense in a NNN budget. Ask a qualified tax professional about an unusual occupancy or fee arrangement.
What to request before signing
- The complete lease, exhibits, rules, and guarantee.
- A base-rent schedule covering the proposed term.
- The expense budget and available historical reconciliations.
- The square-footage and allocation calculation.
- A written system-repair and replacement schedule.
- Improvement, possession, rent-commencement, and permitting terms.
Put unresolved questions in writing. The goal is a documented total occupancy budget and a clear allocation of risk, not simply a lower advertised base-rent number.
Sources & scope
1. SEC: Financial Reporting Manual, section 23402. Florida Department of Revenue: TIP 25A01-04Source review: October 2, 2026. Recheck rules, documents, and project statuses before relying on them in a transaction. Checklists and decision questions are editorial guidance; numerical examples are labeled hypothetical.
This is a lease-review framework. An attorney should interpret and negotiate the agreement; a qualified tax professional should address tax treatment.