Lease Term (Primary Term)
The initial, non-cancelable period of the lease agreement, commonly 10 to 25 years for NNN properties.
Glossary Topic: Lease Structures
Reversion
The value or ownership interest that returns to the landlord at the end of a ground lease or long-term lease term.
Use Clause
The lease provision defining the specific business purpose(s) for which the tenant may operate the property.
Single Net Lease (N)
The tenant pays property taxes in addition to rent; the landlord covers insurance and maintenance.
Single-Tenant Net Lease (STNL)
A property leased to one tenant under a net lease structure.
Tenant Improvement (TI) Allowance
Funds a landlord provides for a tenant to build out or improve its space.
Triple Net Lease (NNN)
The tenant pays property taxes, insurance, and maintenance in addition to base rent.
Leasehold Interest
The tenant’s right to use and occupy property for the lease term, without owning the underlying land.
Absolute Net Lease
The most tenant-responsible NNN lease: the tenant covers taxes, insurance, and all maintenance, including roof and structure.
Master Lease
A single lease covering multiple properties, or a whole property the tenant may sublease.