In a triple net lease (NNN), which of the following expenses is the tenant typically NOT responsible for paying?
Correct Answer
A) Structural repairs to the building foundation
In a triple net lease, tenants pay property taxes, insurance, and maintenance costs, but major structural repairs and capital improvements typically remain the landlord's responsibility. The landlord retains ownership obligations for the building's structural integrity.
Why This Is the Correct Answer
Option A is correct because structural repairs to building foundations are considered capital improvements and major structural work that remains the landlord's responsibility in NNN leases. Under Canadian commercial leasing principles, while tenants pay the 'three nets' (taxes, insurance, maintenance), landlords retain ownership obligations for structural integrity, building envelope, and major capital expenditures. Foundation repairs are structural in nature and preserve the building's long-term value, making them a landlord responsibility rather than an operating expense transferred to tenants.
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