What is typically associated with triple-net leases?

Triple-net leases are a type of commercial lease agreement where the tenant agrees to pay not only the rent but also the property-related expenses. This can include property taxes, insurance, and maintenance costs. The defining characteristic of a triple-net lease is that the tenant assumes responsibility for these additional financial obligations, which typically means the landlord has a more passive role in the management of property expenses.

This type of lease structure often results in lower lease rates compared to other arrangements where the landlord retains those responsibilities, making it an attractive option for landlords, especially in commercial real estate. Additionally, it provides tenants with the opportunity to have greater control over the property, as they are directly involved in the maintenance and upkeeping of it.

Considering this context, the choice associated with a low lease rate, with the tenant covering all property-related expenses, accurately reflects the nature of triple-net leases. In contrast, agreements that mention high rent without additional fees do not align with the definition of a triple-net lease, as the tenant assumes those extra costs. Short-term agreements are not specifically characteristic of triple-net leases, which can have varying terms. Lastly, rent that fluctuates with market conditions is not a fundamental aspect of triple-net leases, as these leases typically set a fixed rent irrespective