A triple net lease, often written as NNN, is a lease structure where the tenant pays base rent plus the three major property expenses — property taxes, building insurance, and common-area or structural maintenance — in addition to its own operating costs.
This structure is common in retail and fuel-related real estate, including much of the Jacksonville and Northeast Florida convenience store market, and understanding it is essential before evaluating any lease that uses this term.
What the Three 'Nets' Cover
The first net is property taxes, which the tenant reimburses to the landlord based on the assessed value of the property. The second net is insurance, typically covering the building itself, which the tenant pays alongside its own liability and business coverage. The third net is common-area maintenance and, in many retail NNN leases, some allocation of roof and structural repair depending on how the lease is drafted.
Because these three categories shift most ownership-level costs to the tenant, the base rent on a triple net lease is generally lower than on a gross lease covering an equivalent property, since the landlord is not absorbing those variable costs.
Why NNN Is Common for Convenience and Fuel Retail
Fuel and convenience retail properties carry meaningful ongoing costs tied to underground storage tank compliance, canopy maintenance, and specialized insurance, so landlords in this sector frequently prefer to pass those costs directly to the operator through a triple net structure rather than build assumptions about them into base rent.
For an investor purchasing a leased gas station or convenience store as an income property, a triple net lease with a stable tenant offers predictable income since most variable costs are borne by the tenant rather than the landlord. See our guide to NNN gas station investments for how this applies to net-leased fuel properties specifically.
What Tenants Should Watch For
A tenant evaluating a triple net lease should request the trailing operating expense history for the property so the additional costs can be estimated accurately rather than guessed from the base rent figure alone. Ask specifically whether roof and structural repair are tenant or landlord responsibilities, since this varies by lease even within an NNN structure.
Because total occupancy cost under a triple net lease depends heavily on these pass-throughs, comparing several Jacksonville opportunities requires the full expense breakdown for each, not just the quoted base rent.
Frequently Asked Questions
Speak With a Florida Gas Station Specialist
Request a confidential consultation or off-market opportunities and pricing through our contact page, or call +1-305-518-1545. The Gas Station Group is headquartered at 8603 S Dixie Hwy, Miami, FL 33143. Principal: Bobby Berrido.