Net Lease

N

Single net leases: tenant pays base rent plus property taxes. Learn the difference from NNN and NN, expense allocation, and critical fields.

By Angel Campa, Founder · Updated March 2026

Overview

A Net Lease (single net, or "N lease") requires the tenant to pay base rent plus one additional expense category on top — most commonly property taxes. The landlord retains responsibility for insurance and building maintenance. Single net leases are less common than NNN or NN structures but appear in certain older retail, industrial, and some government-leased properties.

Expense Breakdown

Tenant Pays

  • •Base rent
  • •Property taxes (the primary "net")
  • •Utilities within the premises
  • •Interior maintenance and repairs
  • •Janitorial services

Landlord Pays

  • •Building insurance
  • •Roof and structural maintenance
  • •Common area maintenance
  • •HVAC systems
  • •Parking lot
  • •Landscaping

Typical Profile

Typical Industries

Older Retail PropertiesIndustrialGovernment-Leased PropertiesMedical

Typical Term Length

3–10 years

Pros & Cons

For Tenant

Pros

  • +Limited expense exposure compared to NNN — only one net to absorb
  • +Landlord retains insurance and maintenance risk
  • +More balanced cost-sharing than NNN structures
  • +Simpler than modified gross — only one additional expense category

Cons

  • −Property taxes can be highly volatile and politically driven
  • −Reassessment events can spike costs dramatically
  • −Tax appeal rights and process may not be specified in lease

For Landlord

Pros

  • +Property tax pass-through protects against one of the most volatile expense categories
  • +Retains control over building maintenance quality
  • +Easier to administer than NNN or modified gross structures

Cons

  • −Retains insurance and maintenance cost risk
  • −Less expense pass-through protection than NNN or NN structures
  • −Property maintenance quality depends on landlord, not tenant

Critical Fields to Abstract

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

Base RentProperty TaxesRent Commencement DateLease Expiration DateInsurance RequirementsOperating ExpensesRenewal OptionsPermitted UseAssignment RightsSubletting Rights

Common Red Flags

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

Missing Audit RightsNo Renewal OptionNo Termination OptionExcessive Management Fee

Compare With

Double Net Lease

View expense breakdown and red flags →

Nnn Lease

View expense breakdown and red flags →

Gross Lease

View expense breakdown and red flags →

Modified Gross Lease

View expense breakdown and red flags →

Frequently Asked Questions

What is the difference between a net lease and triple net lease?

A single net (N) lease passes only one expense category — typically property taxes — to the tenant. A double net (NN) lease passes taxes and insurance. A triple net (NNN) lease passes taxes, insurance, and maintenance/operating expenses. NNN is the most common net lease structure in US commercial real estate today.

Who pays insurance in a single net lease?

In a single net lease, the landlord typically pays for building insurance. The tenant is responsible for their own contents and liability insurance, but the building property insurance is the landlord's cost. This distinguishes N leases from NN and NNN structures where insurance is a tenant obligation.

Are net leases common in modern commercial real estate?

Pure single net leases are relatively uncommon in new construction today. Most net lease transactions use NNN or modified gross structures. However, single net provisions appear in older properties and some government leases where the landlord prefers to retain control over building maintenance and insurance.

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