Double Net Lease

NN

Double net leases: tenant pays rent, taxes, and insurance. Landlord keeps structural maintenance. Learn NN vs NNN differences and red flags.

By Angel Campa, Founder · Updated March 2026

Overview

A Double Net Lease (NN) requires the tenant to pay base rent plus two expense categories: property taxes and building insurance. The landlord retains responsibility for structural maintenance including roof and foundation. Double net leases are common in retail, industrial, and multi-tenant properties where the landlord wants to retain control over building structure while passing tax and insurance risk to tenants.

Expense Breakdown

Tenant Pays

  • •Base rent
  • •Property taxes
  • •Building insurance premiums
  • •Utilities
  • •Interior maintenance and repairs
  • •Janitorial services
  • •HVAC maintenance (in some NN leases)

Landlord Pays

  • •Roof repairs and replacement
  • •Structural/foundation maintenance
  • •Common area maintenance
  • •Parking lot (in most NN structures)
  • •HVAC systems (in some NN leases)
  • •Landscaping

Typical Profile

Typical Industries

RetailIndustrialMulti-Tenant Strip CentersFlex Space

Typical Term Length

5–15 years

Pros & Cons

For Tenant

Pros

  • +Landlord retains structural risk — no surprise roof or foundation assessments
  • +More balanced than NNN while still providing cost transparency
  • +Tenant controls insurance carrier selection for building coverage
  • +Clear delineation between tenant and landlord responsibilities

Cons

  • −Still exposed to property tax reassessments and insurance premium spikes
  • −Tax appeal rights may not be specified — tenant pays but cannot contest assessments
  • −Insurance requirements can be onerous for smaller tenants

For Landlord

Pros

  • +Tax and insurance pass-throughs cover the two most volatile expense categories
  • +Retains structural integrity by controlling roof and foundation maintenance
  • +Better protection than gross lease against expense inflation
  • +Attractive to institutional investors seeking moderate leverage

Cons

  • −Retains structural maintenance risk — major roof replacements are landlord costs
  • −Less expense pass-through than NNN or absolute net structures
  • −Structural repairs unpredictable and can be expensive

Critical Fields to Abstract

These are the highest-priority fields Lextract extracts from NN leases. Click any field to learn what it means and why it matters.

Base RentProperty TaxesInsurance RequirementsRent Commencement DateLease Expiration DateCam ChargesRenewal OptionsOperating ExpensesPermitted UseAssignment Rights

Common Red Flags

Lextract automatically detects these red flags in NN leases. Click any flag to learn the impact and what to do.

Missing Audit RightsNo Cam CapNo Renewal OptionNo Termination OptionExcessive Management Fee

Compare With

Nnn Lease

View expense breakdown and red flags →

Net Lease

View expense breakdown and red flags →

Absolute Net Lease

View expense breakdown and red flags →

Modified Gross Lease

View expense breakdown and red flags →

Frequently Asked Questions

What is the difference between NN and NNN leases?

A double net (NN) lease passes property taxes and insurance to the tenant, but the landlord retains responsibility for structural maintenance including roof and foundation. A triple net (NNN) lease passes all three — taxes, insurance, and maintenance — to the tenant, including structural repairs. NNN gives landlords the most passive income position.

Who pays for a new roof in a double net lease?

In a double net lease, the landlord typically pays for roof repairs and replacement because maintenance is the landlord's retained responsibility. This is the key distinction from a NNN lease. However, tenants should read the lease carefully — some "NN" leases actually pass HVAC and parking lot maintenance to the tenant, making them closer to NNN in practice.

How does Lextract handle NN lease abstraction?

Lextract extracts and clearly identifies the expense allocation structure, flagging whether the lease is truly NN (taxes and insurance only) or whether additional maintenance obligations have been passed to the tenant. Critical fields include property tax provisions, insurance requirements, and the maintenance responsibility section. Red flags include missing audit rights and absent caps on operating expenses.

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