Quick NN vs NNN Clarification Question
Something that I’ve been a bit uncertain about for STNL deals as I’ve begun to underwrite more and more deals and have more exposure in reading leases and turning around proposals in my early brokerage career is the differentiation of certain NN vs NNN leases. 

For clarification of what I mean, sometimes I’ll see a deal showing a NN lease, where all RET/maintenance/insurance are TT responsibilities, however, LL is responsible for roof &amp; structure. 

Other times I’ll see the above-referenced scenario shown at a NNN deal but not absolute, where LL responsibilities show as roof &amp; structure. 

Not sure if I am missing something here but clarification is greatly appreciated as sometimes I feel that I’ll turn a proposal around incorrectly or sound extremely green while talking to principals, as I always assume the latter. 

Thanks!
[{"id": "fluaqnk", "text": "I've found that people's definitions of NN differ so I don't think your experience with this is unique. I don't deal with much STNL but run into this in shop space leases in strip centers. When in doubt, spell it out (did I just make that up?!). So after noting NN, be specific in any underwriting model or proposal by specifying exactly who's responsible for what.", "replies": [{"id": "flubu51", "text": "Thank you!", "replies": [], "depth": 2}], "depth": 1}, {"id": "fluf01u", "text": "NN usually means the tenant is responsible for the fixed costs of insurance/taxes but not CAM (or only a portion. NNN is insurance/taxes/CAM but not roof and structure. Absolute net means tenant is responsible for everything including roof/structure which basically means zero risk for the landlord.", "replies": [{"id": "flupryr", "text": "Couldn\u2019t have said it better myself!  This is exactly how you see it on the OM\u2019s of most senior brokers. Always best to verify.", "replies": [], "depth": 2}, {"id": "fluxix4", "text": "Thank you, that is how I\u2019ve been taught and learned to designate the type of Net lease in the proposal / OM as well. Possibly some of the brokers show NN w/ only LL roof/structure responsibilities, however there is a portion CAM that isn\u2019t passed through, which is why they show it that way. Regardless I\u2019m always calling other brokers and asking 24/7 so I do see variations in different geographical locations. \n\nAnd def still not zero risk if absolute. If your Walgreens says bye bye and goes dark id call that risk\ud83d\ude09. Get what you mean though lol. \n\nThanks again!", "replies": [{"id": "flv4gbe", "text": "That\u2019s always a risk in any asset but I\u2019m talking about unknown variable expenses related to repairing the building that diminishes returns.", "replies": [{"id": "flvc3yi", "text": "Of course just joking. Thanks for your input again.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fluk1mp", "text": "Usually you want to ignore the designations and rely purely on the lease language.  Depending on where you are in the US people use Net, NNN, NN, BY, FSG, etc. seemingly interchangeably.", "replies": [{"id": "flv7weu", "text": "This is the right answer. The answer above with practical takeaway (when in doubt, spell it out) is also the right answer.", "replies": [], "depth": 2}], "depth": 1}, {"id": "flwjlab", "text": "I would call them both triple net. Double net is usually cam excluded completely - not just like building capital expenses\n\nThat\u2019s typically what we will call a carve out - a lot of the National tenants in our portfolio will try to not be responsible for certain CAM pass throughs/amorts. Roof and building expenses are the typical but it varies.", "replies": [], "depth": 1}]