Leases
NN (Double Net)
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Also called: double net lease · net-net lease
NN (double net) sits between modified gross and NNN: the tenant pays its pro-rata share of real estate taxes and insurance on top of base rent, but common area maintenance stays with the landlord. That CAM obligation is the item that distinguishes NN from NNN, where all three nets pass through. Roof and structure remain with the landlord under both NN and NNN — shifting those to the tenant is what makes a lease absolute NNN.
This structure shows up frequently in single-tenant retail and small industrial buildings where a landlord is comfortable passing through taxes and insurance (predictable, well-documented costs) but wants to retain control over building envelope maintenance rather than trust a single tenant to maintain the roof over a long lease term.
As with modified gross, the label alone doesn't guarantee the allocation — always confirm in the lease itself which expenses are actually passed through and which the landlord retains, since "NN" is used inconsistently across markets and even across leases from the same landlord.
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Terms that travel with this one
- NNN (Triple Net)A lease where the tenant pays base rent plus its pro-rata share of the three major operating costs — property taxes, insurance, and common area maintenance — leaving the landlord with reduced expense exposure.
- Absolute NNNA lease structure where the tenant is responsible for all property expenses, including roof and structure, leaving the landlord with a purely passive income stream.
- Modified GrossA lease structure between gross and NNN where base rent covers some expenses (often taxes and insurance) while the tenant reimburses others (often CAM or utilities), with the specific split negotiated deal by deal.
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Applying NN (Double Net) to a real deal
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