 |
 |
|
| Because we answer questions from our Tenants, Clients and Vendors every day, we thought it would be helpful
to provide the answers to the most commonly asked questions on our website. Time to time we update this Q & A to reflect the
most current information. We hope you find the answers to the following questions helpful and informative. If you don’t
find the answer to your general Real Estate question below, please Contact Us or feel free to call us
at (916) 722-0333. |
|
|
Q: What is a Triple Net (NNN) Lease?
A: According to RealEstateGlossary.com a Triple Net Lease is "a lease that requires the tenant to pay all expenses of the property being leased in addition to rent. Typical expenses covered in such a lease include taxes, insurance, maintenance and utilities." Technically speaking, a Triple Net Lease is mostly slang. There is legally only a Net Lease, but this is commonly referred to as a Triple Net Lease in the Real Estate industry. The three Ns making up the NNN Lease are the property Taxes, Insurance and Common Area Operating Expenses, which the Tenant will (in some fashion) be paying for. |
|
Q: What is CAM?
A: CAM is an acronym that stands for Common Area Maintenance. CAM usually refers to the expenses initially paid by the Landlord and then reimbursed by the Tenant back to the Landlord. CAM is often confused by tenants, landlords and agents with Common Area Operating Expenses (CAOE), which also include other operating expenses such as taxes and insurance. |
|
Q: When comparing rental rates what factors should I be aware of.
A: There are many factors to consider when comparing rental rates from one property to another. A few of the considerations are 1) Is the stated rate an annual rate or monthly rate, 2) What kind of lease is determining the rental rate and 3) Are there other expenses to be paid on top of the rental rate. Answering these questions are imperative because the difference between the true costs can initially be hidden. Therefore, two properties with stated rental rates of $1.50 per square foot per month can seem to be of equal cost but, because the leases are different, one property may have other additional costs in addition to the stated rental rate. |
|
| The information above has been obtained from sources believed
reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation
about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions,
assumptions or estimates used are for example only and do not represent the current or future performance of the property.
The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and
legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your
satisfaction the suitability of the property for your needs. |
|
|
|