PSA: That triple net lease clause almost killed my deal

Signed a letter of intent on a 12,000 sq ft industrial space in Austin last month. Landlord slipped in a CAM reconciliation clause that let them bill for capital improvements. Learned the hard way you gotta read every line or the landlord can charge you for a new roof 3 years in. Anyone else get burned by vague NNN terms?

2 comments

2 Comments

sandra_black10d ago

Oh man, that is brutal. I've totally been there with a triple net lease and it's like they hide the worst stuff in the fine print on purpose. For capital improvements especially, you gotta get it in writing that those are the landlord's problem, not yours. Next time push back hard on any CAM clause that says you pay for stuff that lasts longer than a year. Also, get a lawyer who specializes in commercial leases - seriously worth the money to avoid a new roof bill. Most landlords will back down if you just cross out their crazy terms and write in something fair.

felixb2510d ago

I read a real estate blog last week that said 40% of NNN tenants end up paying for roof replacements because of these buried CAM clauses. Sandra_black nailed it about crossing out their terms and writing in something fair, landlords usually fold if you catch it early enough.