NNN leases and CAM charges
In a triple net (NNN) lease, you pay base rent plus your share of the property's three main operating costs: real estate taxes, building insurance, and common area maintenance (CAM). It is the standard structure for South Florida industrial space, so the true cost of a building is rent plus those charges, not rent alone.
The three "nets"
| Net | What it covers | Why it matters here |
|---|---|---|
| Real estate taxes | County property taxes on the building and land | Taxes can rise after a sale, when the property is reassessed |
| Insurance | The landlord's property insurance, including windstorm | South Florida windstorm coverage is a major cost |
| CAM | Landscaping, parking lot and roof upkeep, common utilities, management | Varies widely by building age and what the landlord includes |
How the charges are billed
Most landlords bill an estimate each month along with rent, then reconcile once a year against actual costs. You get a credit or a bill for the difference.
What to check in the lease
- What CAM includes. Look for capital items (like a full roof replacement) being passed through as CAM. Many tenants negotiate to exclude them or spread them over the item's useful life.
- Caps on controllable expenses. A cap limits how fast the controllable part of CAM can rise each year. Taxes and insurance are usually not capped.
- Management fee. Often a percentage of rent or expenses. Know the percentage.
- Audit rights. The right to review the landlord's records if the annual reconciliation looks off.
- Your share. Usually your square footage divided by the building's. Confirm both numbers.
A recent Florida change
Florida's state sales tax on commercial rent was repealed for rent periods starting October 1, 2025, which lowered occupancy costs for many tenants. Confirm how your lease and your tax advisor handle it.
Common questions
Is NNN the same as "modified gross"?
No. In a modified gross lease, some of those costs are included in the rent. Compare offers by converting both to a total annual cost.
Can NNN charges go up during my lease?
Yes. Taxes and insurance follow actual costs, and CAM follows actual spending, subject to any caps you negotiate.
Who pays for the roof?
It depends on the lease. Many NNN leases make the landlord responsible for roof replacement but pass routine roof maintenance through CAM. Get it in writing.
This page is general education, not legal or tax advice. See also how to lease a warehouse and the lease vs. buy calculator.