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A triple net lease is a lease structure common in commercial real estate where the tenant agrees to pay all three major expense categories for the property – net property taxes, net property insurance, and net maintenance costs – on top of base rents. In practical terms, an NNN tenant is responsible for paying property tax bills, insuring the building, and covering routine upkeep/ repairs and often utilities. This arrangement leaves the landlord with a “net” rent (after those expenses) and minimal management responsibilities. NNN leases are commonly used for single-tenant properties like retail chain stores, pharmacies, or office branches; they usually feature long-term leases with stable, creditworthy tenants, albeit at slightly lower rent rates to account for the tenant taking on expenses. For high-net-worth investors, a triple net lease property can be an attractive, bond-like investment: it offers steady and predictable income with lower operating risk, since the tenant covers most variable costs. These are often used in 1031 exchange strategies or as income-focused additions to a portfolio. In Lightstone’s context, while much of its portfolio centers on multifamily and other project types, understanding NNN structures is important – the platform’s focus on transparency means investors are made aware of lease terms in any deal. If Lightstone were to present an NNN investment (say, an industrial or retail asset with a long-term tenant), investors could expect relatively lower cap rates (yield) but very low volatility in cash flow – aligning with goals of capital preservation and stable income.
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