If they sign an NNN, the tenant accepts responsibility for all property expenses such as:About Triple-Net Leases. ” If not shown, you might have to ask the landlord or agent how much the pass-through expenses cost. The leases have. This final safe-harbor rule provides that a rental real estate enterprise will be consideredThere are three main types of lease rates, but a landlord’s interpretation of these different types can vary. Tenant A will pay $4,700/month and Tenant B will pay $9,400 per month. The grand total is then (8 × 1/8) + (6 × ½) = 4 atoms per unit cell. A triple net lease, often referred to as NNN, is one in which the tenant is responsible for paying all the property's operating costs and the rent. You can determine these groupings aurally by listening carefully and tapping along to the beat. Operating expenses for the property are currently $6 per square foot per year. is another of the publicly-traded net lease REITs benefiting from the growth of dollar stores. A triple-net (NNN) commercial lease agreement is a contract between a landlord and a tenant that pays for the three (3) ‘nets’, property insurance, real estate taxes, and common area maintenance (CAM). Examples of Triple Net Expenses in a sentence. 4. These NNN expenses are the real estate taxes, the building insurance, and the maintenance expenses. The type of leases in place at a building can shift property financials considerably. For example, an investor is weighing two investment opportunities that have the exact same purchase price. 4%, a premium of 130 basis points over the broader market-cap-weighted REIT average of 3. Calculate your space rental costs for properties quoting Yearly Rates (e. The triple net amount. The lease on the space ranges from $22 to $25 per square foot, presumably depending on location, windows, and the desirability of the. gimme. g. Lower risk commercial investing. Middle market net lease investment sales have a reason to hope that transactions will start to pick up: Listings are the highest since October in. This includes maintenance costs such as common area maintenance (CAM), insurance, and property. knows the building history and may be comfortable accepting the responsibility for future repairs on that basis. By Anat Katz. Basically, the tenant is paying only for their use of the property. g. The most basic way to quote rent is on a triple net basis. Management responsibilities are reasonable, and therefore landlords are able to learn and mature with this type of income investment. Full-Service Lease Rate: 3,000 SF x $30 per SF per year = $90,000 per year, or $7,500 per month. Price Range. Net asset value is the value of a fund’s assets minus any liabilities and expenses. The triple net lease (NNN) passes the costs of structural maintenance and repairs to the tenant in addition to rent, property taxes, and insurance premiums. The majority (about 75%) of triple negative breast cancers fall in to the basal-like subtype defined by gene expression profiling. A triple net lease is a real estate agreement where the tenant pays multiple property-related expenses in addition to the rent. Many tenants are attracted to NNN leases. Triple net lease (or “triple-net” or “NNN”) properties have risen in popularity due to their relative stability and high earnings potential. Industrial Real Estate Triple Net Lease . They acquire and primarily lease properties to single tenants on a triple-net, long-term basis. Industrial Real Estate Triple Net Lease . It is an agreement between the lessee and the lessor. Your chart of accounts is like a cheat sheet for doing your books. or annual basis based upon their prorata share of the premises. 5%. It examines their potential for external growth and for internal growth. In a typical NNN lease, the landlord passes. The flip side of the triple N lease is the lower rent and lower net income for the landlords. limited liability and individual tax returns, conducting tax research, performing basis adjustments. Possible Tenant Disputes . The allocation of costs between the landlord and tenant may vary depending on the negotiated agreement. You might be quoted: $32. The Final Regulations include two examples addressing triple net-leased property. The $24. Triple net lease quotes. Triple net (NNN): the tenant pays rent, utilities, property taxes, insurance, and maintenance. Triple net lease properties tend to carry a lower interest rate than gross lease propertiesThe type of leases in place at a building can shift property financials considerably. The capitalization rate is used to compute the lease payment; it establishes the rate of return. 5% of unadjusted basis limitation. The modified gross. 's business for stockholders, potential investors, and financial analysts. tenancy at will. January 1, 2023. In general, investing in a triple net commercial property provides tax benefits to the savvy, diversified investor. Net-net is a value investing technique developed by Benjamin Graham in which a company is valued based solely on its net current assets. They can be passive (by default), recharacterized as nonpassive (e. Since you're taking on a share of these financial obligations, you're receiving a lower rental rate in. These leases transfer all taxes, utilities, maintenance, insurance, and rent obligations to the tenant. 33 But triple net lease landlords also should consider renegotiating those. reporting cash flows on a net basis 22-24 foreign currency cash flows 25-27 extraordinary items 28-29 interest and dividends 30-33 taxes on income 34-35 continued. This article considers 9 leading REITs that lease free-standing properties on a triple net basis. In such an agreement, the landlord is not liable for property taxes, insurance premiums and maintenance costs associated with the property. S. The Internal Revenue Code is a labyrinth — you might t hink that you have visited every room only to discover an opening that leads to yet another maze to explore. The recently issued proposed regulations on 199A QBI deduction. In contrast, the absolute net lease includes major building repairs. Professional representation in lease negotiations can serve both parties. Landlords may pass on any number of expenses in a modified gross lease, such as utilities, common area maintenance, janitorial, etc. When a multi-tenant property is rented using triple net leases, the NNN fees are charged (or passed through) to each tenant on a pro-rata basis. On the other hand, under a full service lease, the landlord will bear all of this risk. Lease contracts may contain nonlease components that should be accounted for using other accounting models (e. Tenants are further responsible for all costs associated with their own occupancy including personal property taxes, janitorial services and all utility costs. Step 3: Set up a chart of accounts. This property is the basis for the common alcohol thermometer and the original mercury thermometers. This is, by far, the most common type of commercial lease for office and retail spaces. net lease continues to provide meaningful yield premiums = 75 to 100 basis points wide. This will create millions of new jobs, significantly lift global economic growth, and achieve universal access to electricity and clean cooking worldwide by the end of the decade. Save. For investors looking to purchase a commercial property with a tenant in-place, this is a key difference, especially if the building is older. This article considers 9 leading REITs that lease free-standing properties on a triple net basis. Accidental death & dismemberment (AD&D) insurance provides coverage if you lose a limb or your death is the result of an accident. However, instead of including all taxes, insurance, and common area maintenance (CAM) in the rent amount, the tenant pays an equal portion based on square footage. A sale and triple net leaseback can enable a company to release cash tied up within real estate (whether that be a single asset or a pool of assets; for a single asset class or multiple asset. Give peace of mind this holiday season and protect the ones you love. ($1. On the other hand, gross lease term lengths are often three to five years (if not shorter!) since the landlord carries more of the risk. In a triple net lease agreement, landlords charge a lower monthly rent to commercial tenants and in exchange, the tenant is responsible for covering three additional costs—property taxes, building insurance, and common area maintenance. Both tenants have triple-net leases; all operating expenses are passed through to tenants. A triple net lease works by a commercial property owner leasing a building or space to a tenant. Those costs are outlined in three “Nets”. That depends. For a lessor, there might be problems with the building falling into disrepair. /2 + . Personally, I would suggest you not do it. 1368–1(d)(1) applies; and (iii) Exceeds the amount of the corporation's AAA properly allocable to that distribution. See moreThe triple net lease (NNN) passes the costs of structural maintenance and repairs to the tenant in addition to rent, property taxes, and insurance premiums. 21x to approximately 1. The property owner covers structural damage and mortgage payments. 00 per square foot modified gross, net of janitorial. gain (or loss) that is a taxable event. However, in recent years, the triple net lease structure is also finding its way into office and industrial, too. Learn what NNN means in a commercial real estate environment, how this kind of commercial lease differs from other lease arrangements, and what the advantages of leasing a triple net property are. If a NNN lease is used in a multi-tenant building, the lease will divide the costs on a per-tenant basis. It requires the tenant to pay base rent along with the three nets which are: Property taxes. The comparable has. ”. Net lease. Triple-net properties hold the tenant or lessee responsible for costs on building insurance, maintenance, and real estate taxes in addition to all other typical fees. A bondable lease is a sub-variant of the popular single-tenant net lease. On a Constant Currency basis 1, revenue would have been $97. In a modified gross lease, the tenant is responsible for a few (but not all) of the operating expenses of. Define Triple Net Rent Basis. , True or False: A CPI clause allows rental increases based on an external scale, True or False: In a sublet, the tenant gives up only a portion of their leasehold estate. In commercial real estate, the most common form of net lease is the “triple net” lease, often referred to as net-net-net lease or NNN lease. A triple net lease changes the nature of a real estate investor’s rental property holding from business ownership to passive investment, making the taxpayer ineligible for the popular Qualified Business Income – or 199a – deduction. " But the firm's new project. A single triple. AppFolio Property Manager. When it comes to the QBI deduction, however, landlords who hold triple net leases are not considered to be. Discover the benefits of a triple net lease (NNN) in commercial real estate. With a triple net lease, tenants are responsible for 100% of operating costs on top of the rent they owe. 1411, establishing real estate professional status does not automatically permit an individual to treat his or her rental real estate activities as nonpassive. NNN – Triple Net – a triple net lease rate is an agreement in which the tenant. The owner pays for the property's insurance, repairs, maintenance, and other costs. 8B, with average cap rates of 6. In a triple net lease, the landlord will outlay for many of the operating costs, such as property taxes, insurance, waste removal, utilities in. Net loss attributable to common stockholders was. This type of. Section 2. Rent Increases: Often, triple-net leases contain contractually mandated rent increases at regular intervals over the lease term. Revenue was $94. How to Calculate Lease Rates – NNN – Full-Service Gross – Modified. AND . The owner pays operating expenses associated with vacant space. It discusses how and when. However, NNN leases are often used for single. We rate it. Remember that triple net leases are just one of many commercial lease options, and this option provides a lot of exciting benefits for landlords: Long-term occupancies. The occupants are usually. 5MM) were $6. The first major problem is a horrid arrangement known as the “triple-net-lease,” which appears to have existed since the beginning of time, back when what you built on the land —say, a car wash — might be worth more than the actual land itself. A conventional triple net lease has a tenant being responsible for property taxes, insurance premiums and property maintenance costs. However, a NNN amount per year of $10 would yield $10,000 a year ($10/sqft. Ranking high on the hottest tax topics of the 2018 filing season was in regards to Section 199A, which allows for a 20% tax deduction on qualified business income (QBI) for S-Corporations, LLCs and/or Sole Proprietorships. The opposite of the gross lease is the absolute triple-net or "NNN" lease, which requires the tenant to pay for all operating (e. Net lease requirements are most commonly used. Most retail and industrial spaces are leased on a “triple net basis. The triple net, or NNN, lease used in commercial real estate rentals covers real estate taxes, insurance and maintenance. Any personal property kept on the premises is kept at risk of the tenant only. With a tripe net lease agreement, tenants pay most of the expenses associated with the leased property, including property taxes, repair,. 1. The IRS finalized this safe-harbor requirements recently when it published Revenue Procedure 2019-38. Modified gross leases are often a hybrid of a triple net and full service lease. e. Triple net” properties (also known as NNN properties, short for Net Net Net) are a type of commercial real estate in which the tenant is required to pay the landlord’s cost in addition to the monthly rent. original purchase price of $3MM creates a step-up in basis. In the future, we expect to invest in additional service and necessity-based retail properties on a triple net basis, preferably in portfolios, in addition to our continued focus on hotels and travel centers. Double Net Lease: In a double net lease, the tenant pays their base monthly rental amount plus two of the three major operating expense categories: taxes, insurance, and maintenance. , common area maintenance or services such as security). First, it’s important to note that an advertised cap rate on a triple net lease property is calculated on an all-cash basis. Therefore, using. – Any property rented on a triple net basis. With that, they deal with the maintenance costs for the property. Other properties used to measure temperature include electrical resistance, color, and the emission of infrared radiation (Figure (PageIndex{1})). A gross lease is like a simplified version of the NNN lease. of REITs that provide sustainable cash flows by leasing their properties through long-term contractual leases on a triple-net lease basis. 5 million. Property owners like net leases because it passes responsibility for operational costs on to the tenant and, in some cases, relieves them of the day to. Princetown's board of directors recently learned that Merryvale is bankrupt. Likewise, Operating Costs can also be referred to as Common Area Costs (CAC), NNN’s, Triple Nets, Additional Rent, Common Costs, or Common Area Maintenance (CAM). With a full-service lease, the tenant is generally still responsible for any increase in the operating expenses in year two of the lease and beyond. 00 NNN ($6. Each “N” or “Net. A tenant strapped for cash (possibly due to rising insurance and tax rates) might let some of the maintenance slip. Real estate investment trusts (REITs) Real estate investment trusts (REITs) are funds that you can buy shares from on the open. Ninety-four percent of the company’s QSRs are franchised through 350 franchise organizations. Triple net leases are usually whole building leases with a single tenant. A triple-net lease, also referred to as a net-net-net lease and NNN lease, is a lease agreement where the lessee (a single tenant) is responsible for paying the lessor (landlord) on a net-net-net basis for the following: real estate taxes; insurance; and; property maintenance. The IRS finalized this safe-harbor requirements recently when it published Revenue Procedure 2019-38. The net rental income from Partnership A is deemed QBI. In contrast, the landlord can take a hands-off approach while the property is being developed to the tenant’s tastes. Example: Building maintenance costs are $20,000 per year. com. In normal times the REITs of this sector tend to have 100% rent collection and no problems, but. The added expenses include maintenance charges, property tax, and insurance. In a triple net lease, the tenant absorbs all of the operating expenses and property costs into their own business, in addition to monthly rent payments. " Despite the emotional response that may be generated by the change in status, the sale/leaseback provides a number of advantages to both seller and buyer. A modified gross lease falls somewhere between a gross lease and a triple net lease. Partners allocated excess business interest. What is a Triple Net Lease? A triple net lease is a leasing arrangement in which the tenant or lessee is responsible for paying all of the costs associated with a leased asset. For a QSR with a basis of $1. The tenant must provide and maintain general liability insurance for the term of the lease. The owner pays operating expenses associated with vacant space. These costs are divided into three “Nets. Base Amount = Rent per square foot x Square footage = $30/sqft x 1,000 sqft = $30,000 a year or $2,500 a month. A triple net lease is the opposite of a gross lease. As a percentage of total retail sales, e. A triple net (NNN) lease requires the lessee (tenant) to pay three required expenditures related to the rented real estate: maintenance, insurance, and taxes. Property Insurance: Depending on the specific terms of the lease, the property owner may be responsible for certain insurance deductible and premium. Most space in suburban two- to three-story office buildings in the San Diego region costs $1. These terms are used interchangeably and mean the same thing; the Basic Rent is net to the landlord. The included expenses usually include taxes, insurance, and maintenance but usually exclude the. no H-bonds, no H2O dimer S, Cl, & Br IP high bond dissociation enthalpies low steric crowding disfavored: 4-membered rings too stable. Formerly known as National Retail Properties, NNN REIT (NYSE:NNN), is, as its name suggests, a REIT focused on properties leased out on a triple-net basis. Landlords in triple net leases can take small comfort from the fact that failure to meet the safe harbor does not preclude a rental real estate enterprise from being a section 162 trade or business, as such a determination is based on all facts and circumstances. For property investors, who want to own a revenue-generating property and pay. What is the definition of triple net lease? Net net leases are commonly found in the commercial real estate business where many landlords want fixed incomes. But it really depends on the setup. $0. Net lease REITs pay an average dividend yield of 4. Revenue Procedure 2019-38 only excludes triple net leases from being included in a rental real estate enterprise (and are therefore not eligible for the safe harbor). Triple net leases are common with large single tenant properties such as national restaurant chains and are popular because they offer a turn-key investment. A single net lease is a form of pass through lease in which. As we’ve seen throughout this article, the modified gross lease is a lease structure where the landlord and the tenant both share the cost of operating expenses. Publication date: 31 Jan 2023. triple net basis to Advance Auto over a long-term lease. That means that the tenants will have enhanced control and transparency over expenditures. It's a type of commercial property where tenants agree to cover the cost of. The NAV (on a per-share basis) represents the price at which investors can buy or sell units of the fund. Add the totals for property taxes, insurance, maintenance and common area upkeep and then divide the sum by 12 to arrive at a monthly cost. Single-tenant triple net lease investments are ideal for risk-averse. S. The owner usually maintains responsibility for repairs, including major and structural repairs. A triple-net lease is a rental agreement where the tenant agrees to pay expenses in addition to the monthly rent. Lease Rate: $22. However, cash basis is the most popular method for small businesses. Those costs are outlined in three “Nets”. So, the tenant pays a lump-sum amount, and the landlord manages the payment for the. Note: There is the risk to the tenant of more variability on a year-over-year basis with triple net leases. Investing in property that is leased to credit tenants on a long-term, triple-net basis is an intelligent way to preserve capital, while receiving steady cash flows and achieving potential appreciation in the long-run. This is also a major pro when considering investing in a triple net lease property, as it provides a steady, predictable revenue stream on a monthly basis. 14, 15Exponential smoothing is a time series forecasting method for univariate data that can be extended to support data with a systematic trend or seasonal component. In this type of commercial real estate rent, you pay the amount listed and you also have pay additional costs (usually Operating Expenses) on top of that. A taxpayer must meet one of seven material participation. These costs are usually estimated for the year and incorporated into the rent on a monthly basis. 7% quarter-over-quarter in Q1 2021, according to the Department of Commerce. For example, the tenant in a leased property is required to pay the rent, insurance, maintenance, and property taxes. When there are multiple lessees in a property, a tenant. Only the components that are integral to the right to use an underlying asset are considered lease components. They can be passive (by default), recharacterized as nonpassive (e. Triple Net or NNN leases typically have a base rent price with the tenant paying their proportionate share of operational expenses such as property taxes (“N”), insurance (“N”) and common area maintenance (“N”) on top of that base rental amount i. A net lease arrangement divides the property’s expenses between the tenant and landlord. The net operating income is useful because it describes a property’s ability to generate income without considering its capital structure. The Triple Net sector is not an industry made up of just three of. 199A allows taxpayers other than corporations a deduction of 20% of qualified business income earned in a qualified trade or business, subject to certain limitations. The monthly cost is represented by the figure you end up with. Dallas-based Spirit Realty Capital Inc. Since. Lease Rates Explained . An office space listing with a triple net lease will usually quote the base rent. Because the tenant is responsible for costs that the lessor would otherwise pay, rent on a triple-net lease is. The term “triple net” tends to be overused. However, the landlord is responsible for taking care of the roof and structure. us Leases guide 2. Features From The Magazine Investment Legal Issues. Whenever you enter a transaction for your rental,. 24. Unlike a single net lease, which only requires the tenant to pay. definition. On the other hand, under a full service lease, the landlord will bear all of this risk. The words single, double, and triple refer to the different expenses a tenant can expect to pay each month on top of their base rent. Figuring a shareholder’s stock and debt basis. January 10, 2023. Landlords may pass on any number of expenses in a modified gross lease, such as utilities, common area maintenance, janitorial, etc. What is a cumulative CAM cap? A cumulative CAM cap creates a ceiling on the annual increases in CAM expenses that can be passed on to a tenant, allowing the landlord to recover any unused. , a calendar-year S corporation. • This site is leased on an absolute triple-net basis with a 20 year initial term that expires in September of 2019. A triple net lease changes the nature of a real estate investor’s rental property holding from business ownership to passive investment, making the taxpayer ineligible for the popular Qualified Business Income – or 199a – deduction. Triple net leases have become popular investment choices for individuals looking for a steady stream of income while assuming minimal risk. Single tenant properties typically trade at attractive cap rates that are hundreds of basis points above comparable non-real. Triple Net Space Lease. 00/SF NNN = $1. Ask them what they are doing to combat the triple planetary crisis – tell them it is important to you and your peers. Unlike a single net lease, which only requires the tenant to pay. A triple net lease, or a net lease, is one of the most common lease structures. However, properties leased on a triple net basis were not eligible to rely on this safe harbor. A triple net lease is a real estate agreement in which the tenant pays all expenses associated with the property, such as taxes, insurance, and maintenance costs. It offers a structure that allows franchisees to have more control over their space while taking on additional financial responsibilities. 35 million-square-foot property was 98 percent leased to 15 tenants, according to the DBRS report. A triple net lease, also known as an NNN lease, is a common lease agreement in the commercial real estate industry. Example: If an investor is selling a triple net shopping center for $1,000,000, and has a net adjusted basis of $500,000, the investor will have a gain of $500,000 upon the sale of the property. Triple Net Lease – tenant pays for property tax, building insurance, building maintenance and repairs. These expenses are in addition to the cost of rent and utilities. eligible for the Section 199A tax break. For example, it could say that the rent goes up 2. Your tenant must provide a certificate of liability insurance to the landlord. , common area maintenance or services such as security). “Ask yourself what you want to get out of moving,” Prikker says. | Category: Commercial |. 50 a square foot. 5% of the unadjusted. Proc. What is the expected property before-tax cash flow forecast (on a per square foot basis) you will put in year 2009 of your proforma for this space?By Erik Sherman | November 01, 2023 at 04:10 PM. A triple net lease requires that the tenant pay their monthly rent plus all costs related to: (1) real estate taxes; (2) insurance, and (3) maintenance. Property insurance. and more. Tenants pay rent and property taxes under a single net ground lease and rent, taxes, and insurance under a double net ground lease. The accounting method you choose will depend on how you’re most comfortable tracking and reporting income. The lessee agrees to pay rent, utilities, and all of the property’s operating expenses. Temporary Protected Status (TPS) temporary restraining order (TRO) tenancy. Collagen is the most abundant protein in animals. (Section 5. What Is a Modified Gross Lease? While less common, some properties advertise a modified gross lease. Gross (or Full Service) Lease: The tenant’s monthly payment includes everything, including all operating costs, taxes, and CAM costs. Study with Quizlet and memorize flashcards containing terms like True or False: A triple-net clause refers to a percentage of gross sales rental payment. 6 Firestone Auto Care (Ground Lease) 1313 Harrisburg Pike Columbus, OH 1989 6,707 2/21/2014 $605,900 $90 6. In most NNN leases, these costs, along with base rent, are charged to tenants over. Study with Quizlet and memorize flashcards containing terms like Princetown Incorporated has a $4. The “N” stands for “net of” or exclusion of certain expenses which typically include utilities, property taxes, building insurance. The Act retroactively increased the section 163 (j) limitation to 50% of ATI (up from 30%) for 2019 and 2020, for taxpayers other than partnerships. ; Modified Lease (or Gross): Expenses are divided between tenant and landlord (different for each lease). Common area maintenance, often referred to as “CAM,” are all of the expenses incurred of maintaining the common areas of the property,. Moreover, thanks to triple-net leases, VICI is able to operate. Triple net leases are common with large single tenant properties such as national restaurant chains and are popular because they offer a turn-key investment. Triple Net Leases (NNN) Double Net Leases (NN) Single Net Leases (N) Triple net lease/“NNN” lease. As we’ve seen throughout this article, the modified gross lease is a lease structure where the landlord and the tenant both share the cost of operating expenses. This includes standard property repairs. The term "net basis" means the basis of the assets less liabilities assumed or liabilities to which such assets are subject. A triple net lease, commonly abbreviated as NNN, is a leasing agreement where the tenant is required to pay for the three main expenses of a property on top of the base rent. Molecular Modeling Methods. That’s through triple net leases. 1%. Triple Net Lease (NNN) Triple Net Leases are most often associated with industrial projects, medical offices or retail centers. A triple net lease (triple-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the. Some items you can’t depreciate: the land the property sits on. However, in recent years, the triple net lease structure is also finding its way into office and industrial, too. Triple-net leased assets are particularly attractive to investors new to the real estate world because they act so much like fixed-. tenancy at sufferance. When the value of the. , property taxes, insurance, utilities, repairs, etc. Among the different lease types, Triple Net and Absolute Net Leases are most often confused. Step 12 — Summarize the obligations that come with the lease. EA s for ions. 7. g. Triple Net Lease (NNN Lease) The tenant pays all three nets on a typical lease — taxes, insurance and CAMs — in addition to base rent. Tenant Pays the Operating Expenses. P. However, properties leased on a triple net basis were not eligible to rely on this safe harbor. With 306 properties spanning all areas of the triple-net space, the REIT boasts of a 99. us Leases guide 2. For instance, an investor who inherits a NNN strip center for $5MM versus the. A triple net lease, often known as a NNN lease, is a common commercial real estate leasing structure. A triple net lease is the opposite of a gross lease. A triple net lease agreement form is a document used for the leasing of commercial real estate. DEPOTECH CORPORATION,. A triple net lease, also called a NNN, is a popular commercial real estate lease type. However, NNN leases are often used for single. NNN means “net, net, net” and describes lease agreements that are net of property taxes, insurance, and maintenance expenses for the landlord. Click the card to flip 👆. These increases could occur for instance because property taxes or insurance rates rise, or simply because of inflation. • Reasonable triple net lease rates average $21. Real estate rented under a triple net lease in which the tenant or lessee pays for taxes, fees, insurance, and maintenance is not eligible for. Many real estate investors hoping for clarity on whether they will be eligible for the tax break.