What is a double net lease?

A double net lease is a type of commercial real estate lease in which the tenant is responsible for paying both property taxes and insurance in addition to their regular rent payments. In a double net lease, the landlord retains responsibility for the building's structural maintenance and repairs.

This type of lease is also known as a net-net (NN) lease, and is most commonly found in commercial properties such as offices, retail spaces, or industrial properties. Double net leases are considered a middle ground between a single net lease (where the tenant is responsible only for property taxes) and a triple net lease (where the tenant is responsible for property taxes, insurance, and maintenance costs).

Double net leases can benefit both landlords and tenants. For landlords, they provide a steady income stream while shifting some of the financial responsibility onto the tenant. For tenants, they offer more control over expenses and can help in budgeting for property costs.

It is important for both parties to clearly outline the terms of the double net lease in the contract, including which party is responsible for specific expenses and how those expenses will be calculated and paid. Consulting with a real estate attorney or professional can help ensure that the terms of the lease are clearly understood and agreed upon by both parties.