What distinguishes a triple net lease?

In a triple net lease, the tenant is responsible for covering all operational costs associated with the property. This usually includes three main expenses: property taxes, insurance, and maintenance costs. By assuming these financial responsibilities, the tenant typically pays a lower base rent compared to other lease types, allowing landlords to have stable cash flow without the burden of variable operating costs.

This structure creates a clear and predictable financial arrangement for landlords while enabling tenants to manage their respective overhead costs more directly. The dynamics of a triple net lease can often be more favorable in commercial real estate, as it allows for an easier way to assess the long-term profitability and cost predictability of the leased property.

The other options do not accurately capture the essence of a triple net lease, as they either misrepresent the landlord's role or do not encapsulate the comprehensive nature of the tenant's financial obligations within this leasing arrangement.