# Triple Net Lease

*Real Estate — Finicade finance glossary*

In a triple net lease the tenant pays property tax, insurance and maintenance on top of rent, leaving the landlord with a near-passive income stream. Cap rates are correspondingly lower because the cash flow is cleaner and more predictable. The risk concentrates in tenant credit: a 15-year NNN lease is effectively a corporate bond secured on a building, so the tenant's solvency is the investment.

**Also known as:** NNN lease, net lease, FRI lease

**Related terms:** [Lease Agreement](https://finicade.com/glossary/lease-agreement), [Commercial Real Estate](https://finicade.com/glossary/commercial-real-estate), [Net Operating Income](https://finicade.com/glossary/net-operating-income), [Cap Rate](https://finicade.com/glossary/cap-rate), [Real Estate Investment Trust (REIT)](https://finicade.com/glossary/real-estate-investment-trust)

Source: https://finicade.com/glossary/triple-net-lease