In a triple net lease, or NNN lease, the Lessee (tenant) pays the Lessor (landlord) rent, taxes, insurance, and the Lessee’s share of maintenance expenses for the property.
While the rent is mutually established upfront and the projected cost for taxes and insurance can be reasonably estimated based on current costs, estimating and budgeting for future maintenance costs can be difficult without knowing the condition of the building and its components.
Our Lease Inspections include the evaluation of all major components in a building, which establishes the components’ current condition, remaining design life, and any immediate and future repairs that are necessary. This type of inspection includes the evaluation of the following components:
- Structure – concrete, steel and wood components
- Roof system -- surface material, condition, age and remaining useful life
- Building envelope – roof and sidewalls including windows and doors
- Interior finishes – floors, walls and ceilings
- Heating, ventilation and air conditioning
- Electrical system and components
- Plumbing system and fixtures
- Fire suppression and life safety systems
- Hardscape - walks, roadways, drives, parking areas
- Storm water drainage
A lease inspection can have many advantages for the Lessee and/or the Lessor.
Some advantages of a third-party pre-lease inspection for the Lessee include:
- Verification that components are functioning and suitable for intended use.
- Knowing the condition of the property and its components prior to occupancy could protect Lessee from assuming liability associated with existing defects or premature failure of components.
- Understanding long-term maintenance requirements and related costs can be useful for budgeting purposes in NNN leases.
Some advantages of a third-party pre-lease Inspection for the Lessor:
- Establishing a baseline condition for the property prior to leasing may help owners recover costs for damages incurred during occupancy.
- Property condition assessment can help owners understand and set/monitor maintenance guidelines expected of tenant in NNN lease.
Let us help you avoid the cost and headaches of potential disputes and litigation by objectively documenting the property's condition prior to occupancy.