Lease Types and Structures

Double Net Lease (NN)

A lease structure where the tenant pays base rent plus property taxes and insurance, while the landlord retains responsibility for CAM and structural upkeep — a middle ground short of full triple net.

Home Glossary Lease Types and Structures Double Net Lease (NN)
Definition

A double net lease (NN) is a lease structure in which the tenant pays base rent plus two of the three "nets" — typically property taxes and insurance — while the landlord retains responsibility for common area maintenance and structural upkeep. This falls between a gross lease and a full triple net (NNN) lease in terms of tenant cost responsibility.

Double net vs triple net responsibility

Cost itemDouble net (NN)Triple net (NNN)
Property taxesTenantTenant
InsuranceTenantTenant
CAM/maintenanceLandlordTenant

What to watch for before committing

Exact cost allocation confirmation

Verify precisely which two "nets" you're responsible for, since specific allocations can vary between deals labeled double net.

Structural responsibility clarity

Confirm the landlord's maintenance responsibility scope, especially for major structural items like roof and foundation.

All-in cost comparison

Compare total occupancy cost against competing NNN or gross lease quotes rather than relying on the double net label alone.

Landlord's maintenance quality history

Since the landlord retains CAM responsibility, research their track record for building upkeep and responsiveness.

Insurance requirement specifics

Confirm exactly what insurance coverage you're responsible for versus what the landlord carries separately.

Escalation interaction

Understand how any rent escalation clause interacts with your specific double net cost responsibilities.

When you need to know this

  • Comparing lease structures across buildings — understanding exactly which costs you'd be responsible for under a double net arrangement
  • Negotiating lease terms — potentially negotiating a double net structure as a middle ground between gross and full NNN
  • Budgeting occupancy cost — calculating true total cost under a double net lease versus alternatives
  • Evaluating landlord maintenance responsibility — understanding what upkeep the landlord retains under this structure

Frequently asked questions

What is a double net lease? +
A double net lease (NN) is a lease structure where the tenant pays base rent plus property taxes and insurance, while the landlord retains responsibility for common area maintenance and structural upkeep.
How is a double net lease different from triple net? +
In a double net lease, the landlord retains CAM and maintenance responsibility, while in a triple net (NNN) lease, the tenant is responsible for all three nets: property taxes, insurance, and CAM.
Is a double net lease more common than triple net for industrial space? +
No, triple net leases are the dominant structure for industrial and warehouse space in the U.S. Double net leases appear less frequently but can still be negotiated depending on the landlord and property.
How do I compare a double net lease to a gross lease quote? +
Add your estimated property tax and insurance costs to the quoted double net base rent to get an all-in cost per square foot, then compare that figure directly to a gross lease's quoted rent.

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