This article demystifies net leases in U.S. commercial real estate. It explains how real estate taxes (RET), insurance, and CAM are reimbursed under single, double, and triple net leases, and shows—using a sample Excel model—how each structure affects a landlord’s NOI and risk. It also highlights why tenants agree to NNN leases, along with the key benefits and risks they face.

Net Effective Rent (NER) reveals the true average rent per square foot per year after factoring in free rent, TI allowances, commissions, and expense recoveries. Using discounted cash flows and PMT, NER turns complex lease structures into a single comparable number, helping landlords and tenants make apples‑to‑apples decisions across different spaces, terms, and markets.