Triple Net Leases | Dental Office Commercial Real Estate

A dental office triple net lease is a type of commercial lease agreement commonly used in real estate transactions. In a triple net lease, the tenant (the dental office) is responsible for paying not only the base rent but also the net costs associated with the property, including property taxes, insurance, and maintenance costs.

Here's what each "net" typically refers to:

Property Taxes: The dental tenant is responsible for paying property taxes directly to the taxing authority.

Insurance: The dental tenant is responsible for obtaining and paying for insurance coverage for the property. This usually includes liability insurance and property insurance.

Maintenance: The dental tenant is responsible for maintaining the property, including repairs, utilities, and any other operating expenses.

In essence, in a triple net lease arrangement, the tenant bears the majority of the operating expenses associated with the property, in addition to the base rent. This can provide the landlord with a more predictable income stream, as their costs are fixed and the tenant is responsible for any increases in operating expenses over the lease term.

For dental tenants, triple net leases can offer greater control over the property and its upkeep but also come with higher financial responsibilities and risks. It's essential for tenants to thoroughly review the terms of the lease and understand their obligations before signing such an agreement.

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