Who typically pays the real estate taxes in a Triple Net Lease?

In a Triple Net Lease, the tenant is responsible for paying real estate taxes, along with other costs such as property insurance and maintenance expenses. This type of lease structure is designed to shift the financial responsibility of various operating costs from the landlord to the tenant. By doing so, landlords can provide a lower base rent while ensuring that the overall costs associated with property ownership are covered.

The rationale behind a Triple Net Lease is that tenants are often more directly invested in controlling the costs associated with the property they occupy. They can manage and budget for these expenses according to their own usage and operational needs. Consequently, it's common in commercial real estate for tenants to take on these responsibilities to make the arrangements more appealing and efficient from a management standpoint.

This leasing structure is particularly beneficial for landlords because it provides more predictable income with fewer surprises due to fluctuating operating costs. In contrast, the other individuals mentioned, such as property managers and real estate agents, typically do not bear the responsibility for taxes under this type of lease agreement.