Why do brokers advertise lease rates for industrial space as $.50NNN + $.30Opex
When brokers advertise or provide rates in the form “ $.50NNN + $.30Opex “ does that mean the gross rate is $.80? I’m getting these kind of responses for industrial lease space…
[{"id": "ibmg11h", "text": "pretty much.  The landlord is likely going to keep the $0.5 (rental rate), and the $0.3 is going towards passthrough expenses (he will collect that from you to pay for Insurance, Taxes, etc) and this will will change year-to-year.", "replies": [{"id": "ibp535q", "text": "^this, but also (at least in my market) there is an annual reconciliation, if the tenant\u2019s actual billed cam/insurance/taxes were higher than the estimated, the tenant has to pay the difference, typically within 60 days after request from the landlord, if the actuals were under, then the tenant gets a credit!", "replies": [], "depth": 2}], "depth": 1}, {"id": "ibmsvve", "text": "That is triple net. In my world that is common area maintenance items and management billed monthly/yearly To the tenants in addition to rent.", "replies": [], "depth": 1}, {"id": "ibmw3u9", "text": "The $0.30 is just an estimate. I would caution OP about using gross. There\u2019s nothing gross (in legal term) about these NNN leases.", "replies": [], "depth": 1}, {"id": "ibnlag7", "text": "It's relatively close. NNN+(all CAM/other) \u2248 Gross. NNN =/= absolute net. Note that west coast tends to quote industrial on a $/sf/mo basis while more east coast is usually $/sf/yr", "replies": [], "depth": 1}]