What's in This Guide
Key Takeaways
- In a double net (NN) lease, the tenant pays base rent plus a share of property taxes and building insurance premiums.
- The landlord typically keeps structural repairs and maintenance, which is the main difference from a triple net (NNN) lease.
- The label on the lease is not the law of the lease. Two documents both called "double net" can allocate costs differently.
- Compare total occupancy cost, not base rent. A lower base rent with more pass-throughs can cost more than a higher gross rent.
A double net lease, usually written as NN, is a commercial lease in which the tenant pays base rent plus two categories of building costs: property taxes and building insurance. Maintenance and repairs generally stay with the landlord. That last part is what separates a double net lease from the better-known triple net lease.
The Double Net Definition
Net leases shift building operating costs from the landlord to the tenant. Each "net" is a category of cost the tenant takes on. In a double net lease the tenant covers two of them, property taxes and building insurance premiums, on top of base rent (Investopedia: Double Net Lease). In a multi-tenant building those costs are usually billed as a proportionate share based on the tenant's square footage.
What the tenant does not take on in a true NN structure is the third net: maintenance, repairs, and upkeep of the structure and common areas. Those stay on the landlord's side of the ledger, which is why landlords who want to be fully hands-off tend to prefer triple net instead.
Where NN Fits in the Net Lease Family
The clearest way to see a double net lease is next to its siblings. Industry glossaries such as NAIOP's terms and definitions cover the full spectrum (NAIOP: Industry Terms and Definitions).
| Lease type | Tenant pays | Landlord keeps |
|---|---|---|
| Gross / full service | One rent number | Taxes, insurance, maintenance |
| Single net (N) | Rent + property taxes | Insurance, maintenance |
| Double net (NN) | Rent + taxes + insurance | Maintenance and repairs |
| Triple net (NNN) | Rent + taxes + insurance + maintenance | Usually structure only, and sometimes not even that |
Base rent generally moves in the opposite direction from the pass-throughs. The more building costs a tenant absorbs, the lower the quoted base rent tends to be, because the landlord is no longer carrying those expenses. That is why comparing two spaces on base rent alone is a mistake: an NN space at one rate and an NNN space at a lower rate can land in very different places once taxes, insurance, and maintenance are added up.
What Connecticut Tenants Should Check
In our experience across Connecticut lease transactions, the label on page one tells you less than the clauses inside. Before signing anything called a double net lease, confirm four things.
Read past the label
- Which specific costs pass through, and how is your proportionate share calculated?
- Is there a cap on annual increases in pass-through costs?
- Who is responsible for the roof, structure, parking lot, and building systems, in writing?
- How are property tax increases after a sale or revaluation handled? Connecticut towns revalue on a schedule, and a revaluation can move the tax line significantly.
Hybrid structures are common. Some leases marketed as double net push snow removal or parking lot repairs to the tenant. Some "triple net" leases carve the roof and structure back to the landlord. The only reliable answer is the lease language, reviewed with your attorney and, ideally, a broker who negotiates these clauses every month. Our tenant representation work covers exactly this, and you can compare current spaces on our Connecticut listings.
Comparing Lease Structures in Connecticut?
Commercial Connection negotiates lease structures for Connecticut tenants and landlords: base rent, pass-throughs, caps, and repair obligations, in plain numbers you can compare across properties.
Send Us Your Criteria Or call John Famiglietti directly: 203-596-7777Browse current Connecticut commercial listings or ask us what a quoted rent really costs once the pass-throughs are counted.
Frequently Asked Questions
Is a double net lease common?
Less common than triple net. Many landlords who shift taxes and insurance to tenants shift maintenance too, which makes the lease NNN. Double net structures show up most often in smaller multi-tenant buildings where the landlord wants to keep control of maintenance quality.
Who pays for repairs in a double net lease?
In a textbook NN lease, the landlord keeps maintenance and repairs. In practice, leases vary: some pass specific items like snow removal or HVAC service to the tenant. The lease language controls, so read the repair and maintenance clauses rather than relying on the label.
Is double net cheaper than triple net?
Not automatically. Base rent under NNN is usually quoted lower because the tenant absorbs more costs. The comparison that matters is total occupancy cost: base rent plus every pass-through you will actually pay in that building, including a realistic estimate of tax and insurance increases over the term.
Sources and Further Reading
Primary sources
This article provides general information, not legal, accounting, tax, lending, or valuation advice. Lease terms, requirements, and market conditions vary by property, municipality, and transaction, and may change. Verify material information with qualified professionals before relying on it.
