What is NNN (triple net) and why it matters for software
In an NNN lease, the tenant pays base rent plus property taxes, insurance, and common area maintenance (CAM). Landlords pass these costs through to tenants, shifting operating expense risk from landlord to tenant. Your software must capture base rent, NNN pass-throughs (estimated and actual), reconciliation workflows, and critical dates (renewal options, option exercise deadlines, expiration).
NNN dominates retail—single-tenant and multi-tenant—and is common in office and industrial. If you're tracking dozens of NNN leases in Excel, you're at risk of missed renewals, reconciliation errors, tenant disputes, and lost revenue. Commercial real estate software built for NNN streamlines this.
NNN vs. gross vs. modified gross: When each applies
NNN (triple net): Tenant pays base rent plus taxes, insurance, and CAM. Landlord receives predictable net income; tenant bears expense risk. Common in retail and single-tenant deals.
Gross: Landlord pays all operating expenses. Tenant pays flat rent. Simpler for tenant but less predictable for landlord. Common in older office buildings.
Modified gross: Landlord pays base year expenses; tenant pays increases above base year. Middle ground. Common in office.
Your NNN lease management software should support all structures—many brokers handle mixed portfolios. The ability to filter and report by lease type is essential.
Must-have NNN lease management features
- Lease structure: NNN, modified gross, gross—with rent per SF and base rent
- Pass-through tracking: Taxes, insurance, CAM—estimated and actual
- Reconciliation: Annual or periodic reconciliation of pass-throughs
- Critical dates: Renewal notices, option deadlines, expiration matrix
- Document storage: Lease, amendments, estoppels per deal
Taxes, CAM, and insurance pass-throughs
At lease signing, landlords typically estimate pass-throughs (taxes, insurance, CAM) and collect monthly. At year-end, actual costs are reconciled—tenants are credited if they overpaid or charged if they underpaid. NNN software should track estimated pass-throughs, actuals, and reconciliation status. CAM reconciliations can be complex (especially in multi-tenant retail); good software stores the data needed for audits and tenant communication.
Brokurz supports NNN lease structures and captures rent per SF, base rent, and deal-level financials. You can run reports by property, tenant, or deal type and never miss a reconciliation deadline.
Critical dates NNN brokers cannot miss
NNN leases often have 5–10 year terms with renewal options. Missing a renewal notice (typically 6–12 months before expiration) can cost the landlord or tenant millions. Your software must support:
- Renewal notice deadlines (when must tenant or landlord give notice?)
- Option exercise deadlines (when must tenant exercise renewal option?)
- Lease expiration dates
- Estoppel deadlines (for sales or refinancing)
- TI completion dates (if applicable)
An expiration matrix—showing all leases expiring by month or quarter—is essential for portfolio management and proactive outreach.
NNN in retail vs. office: Differences to capture
Retail NNN: Often includes percentage rent (tenant pays base rent plus a percentage of sales above a threshold). May have co-tenancy clauses, exclusive use provisions, and go-dark provisions. Software should support these lease-specific terms.
Office NNN: Less common than modified gross, but used in single-tenant or investor-focused deals. Pass-through structure is similar; TI and free rent tend to be more prominent.
The best NNN lease management software lets you tag deals by property subtype (retail, office, industrial) and filter accordingly. See our office and retail lease tracking guide.
How to evaluate NNN lease management software
Before choosing a platform, list your top 20 NNN deals. For each, note: base rent, rent per SF, pass-through structure, reconciliation frequency, renewal/option dates, and document types. Can the software capture all of this in structured fields? Test the expiration matrix—can you see all leases expiring in the next 24 months? Verify document storage—can you attach leases, amendments, estoppels, and reconcile docs per deal? Check reporting—can you run pass-through and financial reports by property or tenant?
Brokurz for NNN lease management
Brokurz supports gross, modified gross, NNN, net, and absolute net leases. You get deal pipeline (LOI through closed), critical dates, investment analysis, and AI document classification—all in one platform. Explore Brokurz for commercial or contact us to see it in action.
FAQ: NNN Lease Management Software
What is NNN lease management software?
Software that tracks triple net leases—base rent plus tenant pass-throughs for taxes, insurance, and CAM—with reconciliation workflows and critical date reminders.
Does Brokurz support NNN leases?
Yes. Brokurz supports NNN, gross, modified gross, net, and absolute net—with rent per SF, base rent, and deal-level tracking.
How do I track CAM reconciliations?
NNN software should store estimated vs. actual pass-throughs and support reconciliation workflows. Brokurz captures deal financials for reporting and reconciliation.
What is the difference between NNN and modified gross?
NNN: tenant pays all taxes, insurance, and CAM. Modified gross: landlord pays base year; tenant pays increases. NNN shifts more expense risk to the tenant.
Why is NNN common in retail?
Retail landlords prefer NNN for predictable net income and to pass expense variability to tenants. Single-tenant retail almost always uses NNN or absolute net.
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