NNN Lease

A Triple Net Lease (NNN) is one of the most common lease structures in commercial real estate, particularly for healthcare and medical office tenants. Under this arrangement, the tenant is responsible for three major expense categories beyond base rent: property taxes, building insurance, and common area maintenance (CAM) costs. This structure shifts most operating costs from the landlord to the tenant, making it predictable for landlords but potentially variable for tenants. Healthcare operators — including dental practices, medical offices, and ambulatory surgical centers — frequently encounter NNN leases in suburban Chicago markets such as Naperville, Oak Brook, and Schaumburg. Understanding the full cost structure before signing is critical to accurate financial planning.

Healthcare operators who underestimate NNN costs often face significant budget shortfalls mid-lease. Understanding the full cost structure upfront allows practices to negotiate caps on CAM increases and make accurate financial projections before committing to a space.

A dental practice leasing 3,500 sq ft in Naperville under an NNN lease pays $28/sq ft base rent plus its proportionate share of property taxes ($4/sq ft), insurance ($1/sq ft), and CAM charges ($3/sq ft) — bringing the true occupancy cost to $36/sq ft annually.