Short answer: on a NNN (triple net) lease, you pay base rent plus your share of the building's property taxes, insurance and common area maintenance, often called CAM. You usually pay an estimate each month, and the landlord compares it to actual costs after the year ends. If actual costs ran higher, you may get a bill. Ask for past years' numbers before you sign.
I'm Carolyn Olivieri, a Doylestown-based industrial and flex specialist with KW Commercial. I have over ten years in distribution and still run a distribution business today. Rent per square foot gets most of the attention, but the extra charges can change your monthly total a lot.
What the three nets are
- Property taxes: your share of the real estate taxes on the building.
- Insurance: your share of the landlord's property insurance. You'll usually carry your own policy for your business too.
- Common area maintenance (CAM): your share of costs like snow removal, landscaping, parking lot upkeep, common lighting and property management. What counts as CAM depends on the lease.
Your share is usually based on how much of the building you rent. If you lease 10,000 square feet in a 50,000 square foot building, your share would typically be 20%.
How the yearly reconciliation works
Most landlords bill estimated NNN charges monthly along with rent. After the year closes, they total up what was actually spent and compare it to what tenants paid. If you paid too little, you owe the difference. If you paid too much, you should get a credit or refund. This step is often called reconciliation or a true-up.
Bucks County numbers
Colliers reported an average direct asking rate of $11.54 per square foot, NNN, for Bucks County industrial space in the second quarter of 2026. (Source: Colliers, Philadelphia Regional Industrial Report, Q2 2026) That figure is base rent only. Your NNN charges come on top of it.
Gross and modified gross leases
On a gross lease, more of those costs are built into the rent. A modified gross lease splits them, so you might pay rent plus utilities and some increases in taxes or operating costs. The names aren't standard, so read what each lease actually says.
Questions to ask before you sign
- What were the NNN charges per square foot for the last two or three years?
- What exactly is included in CAM? Are management fees or capital repairs like a new roof included?
- Is there a cap on how much controllable CAM costs can go up each year?
- When will I get the yearly reconciliation, and can I review the landlord's records?
- Who pays for HVAC repairs and replacement in my space?
Tax and legal questions should go to your accountant and attorney. Have an attorney review the lease before you sign.
Helpful reading: What Does It Cost to Lease Industrial Space in Bucks County?, Should I Lease or Buy a Warehouse in Bucks County? and What Does a Tenant Rep Broker Do for Industrial Space?
FAQs
What does NNN mean on a commercial lease?
NNN means triple net. You pay base rent plus your share of property taxes, insurance and common area maintenance.
What is a CAM reconciliation?
After the year ends, the landlord compares the estimated charges tenants paid to actual costs. You either owe the difference or get a credit.
Is the asking rent the full cost on a NNN lease?
No. Asking rent on a NNN lease is base rent only. Taxes, insurance and CAM charges are added on top.
Can I limit CAM increases?
Some leases include a cap on increases in controllable CAM costs. It's a common thing to ask for when you negotiate.
Talk to a local industrial specialist
Questions about industrial or flex space in Bucks County? Email Carolyn Olivieri, a Doylestown-based industrial and flex specialist with KW Commercial, at c.olivieri@kwcommercial.com
Carolyn Olivieri, KW Commercial