Which type of properties are triple-net leases typically associated with?

Triple-net leases, often abbreviated as NNN leases, are typically associated with commercial properties. This type of lease arrangement requires the tenant to pay not only the base rent but also a portion of the property's operating expenses. These expenses generally include property taxes, insurance, and maintenance costs.

Commercial properties are ideal for triple-net leases because they often feature long-term tenants, such as businesses or corporations, that can handle these additional responsibilities. This arrangement benefits property owners as it provides a more predictable income stream and reduces the financial burden of property management since many expenses are passed on to the tenant.

Other types of properties, like residential, industrial, and agricultural, usually do not follow this lease structure. Residential properties primarily focus on the landlord-tenant relationship without the complexities of additional operating costs being transferred to tenants. Meanwhile, while industrial properties may sometimes utilize similar lease structures, triple-net leases are predominantly found in commercial setups, where tenants require long-term stability and landlords want reduced operational management.