Single, Double & Triple Net Leases: What Jacksonville Landlords Need to Know

If you own or are considering purchasing investment property in Jacksonville, Florida, understanding lease structures is fundamental to evaluating your return on investment and cash flow projections. While most residential property management in Jacksonville uses gross leases — where the landlord pays operating expenses — commercial and some mixed-use properties frequently use “net lease” structures that shift some or all expenses to the tenant.

Here’s a clear breakdown of single, double, and triple net leases and what they mean for Jacksonville property investors.

What Is a Net Lease?

In a standard gross lease (common in Jacksonville residential property management), the landlord collects rent and pays property taxes, insurance, and maintenance costs from that income. A net lease, by contrast, passes some or all of those costs to the tenant on top of the base rent. Net leases are most common in commercial real estate — retail, industrial, and office properties — though they occasionally appear in residential investment contexts.

Single Net Lease (N Lease)

In a single net lease, the tenant pays base rent plus their share of property taxes. The landlord retains responsibility for insurance premiums and building maintenance costs. Single net leases are relatively uncommon and provide the least expense transfer to the tenant. From a Jacksonville landlord’s perspective, they offer modest relief on property tax obligations but still leave significant operating costs on the owner’s plate.

Double Net Lease (NN Lease)

A double net lease requires the tenant to pay base rent, property taxes, AND building insurance premiums. The landlord typically retains responsibility for structural repairs and major building systems. Double net leases are common for commercial tenants in Jacksonville strip malls, retail plazas, and standalone buildings. They provide more predictable net income for the property owner while giving the tenant more control over insurance coverage.

Triple Net Lease (NNN Lease)

The triple net lease — often called an NNN lease — is the gold standard for passive real estate investment. In a triple net lease, the tenant is responsible for base rent plus all three “nets”: property taxes, building insurance, and maintenance/operating costs including repairs. NNN leases are extremely common for national tenants — think fast food chains, pharmacies, and dollar stores in Jacksonville — and are prized by investors for their truly passive income potential.

NNN leases typically feature below-market base rents in exchange for the tenant absorbing operating costs, but for investors seeking hands-off income, the trade-off is often worthwhile.

Which Lease Type Is Right for Jacksonville Property Investors?

For residential Jacksonville property owners, the standard gross lease remains the norm — and professional residential property management handles all operating costs on your behalf. For those exploring commercial real estate in Jacksonville, NNN properties — particularly those anchored by national tenants — offer some of the most passive investment vehicles available.