What is a commercial lease 'triple net' (NNN) arrangement commonly used in Alberta?
Correct Answer
B) A lease where the tenant pays base rent plus property taxes, insurance, and common area maintenance costs in addition to rent
A triple net (NNN) lease is common in Alberta commercial real estate. The tenant pays base rent plus the three 'nets': property taxes, building insurance, and common area maintenance (CAM). This structure shifts operating cost risk from the landlord to the tenant and is the dominant lease structure for industrial and many retail properties in Alberta.
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