NNN stands for "net, net, net." It is a type of lease agreement in which the tenant is responsible for paying all operating expenses of the property, including taxes, insurance, and maintenance. The landlord is only responsible for providing the building shell.
NNN charges are typically expressed in dollars per square foot per year. The amount of NNN charges will vary depending on the location and type of property.
CAM Charges
CAM stands for "common area maintenance." It is a type of lease agreement in which the tenant is responsible for paying a portion of the common area maintenance expenses of the property. The landlord is responsible for paying the remaining portion of the CAM charges.
CAM charges are typically expressed in dollars per square foot per year. The amount of CAM charges will vary depending on the size of the property and the number of tenants.
Difference Between NNN Charges and CAM Charges
The main difference between NNN charges and CAM charges is who is responsible for paying the operating expenses of the property. In a NNN lease, the tenant is responsible for all operating expenses, while in a CAM lease, the landlord is responsible for a portion of the operating expenses.
Another difference between NNN charges and CAM charges is how they are calculated. NNN charges are typically calculated based on the size of the leased space, while CAM charges are typically calculated based on the total square footage of the property.
Finally, NNN charges are typically fixed, while CAM charges can vary from year to year. This is because CAM charges are based on actual operating expenses, which can fluctuate.
Which Lease Type Is Right for You?
The type of lease agreement that is right for you will depend on your individual circumstances. If you are looking for a lease that is predictable and easy to budget, then a NNN lease may be a good option. If you are looking for a lease that gives you more control over the operating expenses of the property, then a CAM lease may be a better choice.
