Norton Herrick serves as CEO and chairman of The Herrick Company, a real estate investment firm headquartered in Boca Raton, Florida. Throughout his tenure with the company, Norton Herrick has ensured consistent profitability regardless of economic conditions.
There are numerous kinds of leases that real estate investors may choose from, including full-service leases, modified-gross leases, and net leases. While some might find all of these differentiations unclear, most often investors confuse a triple net (NNN) lease with an absolute net lease. Read ahead for an explanation of each lease type:
In NNN leases, the tenant is responsible for paying for all costs relating to property taxes, maintenance, and insurance, hence, the triple net. The landlord assumes the base rent but also must take care of roof and structure. Conversely, in absolute net leases, also known as a bondable or “hell or high-water” leases, the tenant must pay for all costs relating to the property, even those arising from the roof and general structure.