What best describes a triple net lease?

A triple net lease is best described as a lease commonly found with a single long-term tenant because this type of lease structure is typically used in commercial real estate settings. In a triple net lease, the tenant is responsible for paying not only the base rent but also the property taxes, insurance, and maintenance costs associated with the property. This arrangement shifts many of the operational costs away from the landlord to the tenant, making it attractive to landlords who wish to minimize their responsibilities.

The long-term aspect is significant because both parties usually invest in a stable and ongoing relationship. The single tenant approach allows the landlord to enter into a predictable and consistent income scenario since the tenant is often committed to a multi-year lease. This setup is advantageous for properties where substantial investments in improvements or build-outs are made, ensuring that the tenant remains within the space for an extended period to justify those investments.

In contrast, short-term rentals and leases with variable rental increases do not align with the characteristics of a triple net lease, which is designed for steady, reliable revenue through a long-term commitment. Furthermore, stating that a lease includes only the rent amount does not capture the essence of a triple net lease, as it fundamentally involves additional costs borne by the tenant beyond just rent.