NNN vs Full Service: What You Actually Pay
Two office listings can quote very different rates for similar space because they include different things. First what each lease type covers and how to compare them, then a worked example from the building we own and are leasing, and a few other listings nearby.
The three common lease types
| NNN (Triple Net) | Modified Gross | Full Service | |
|---|---|---|---|
| Base rent | Lower | Middle | Higher |
| Property taxes | Tenant pays share | Depends on lease | Included |
| Building insurance | Tenant pays share | Depends on lease | Included |
| Maintenance | Tenant pays share | Depends on lease | Included |
| Utilities, janitorial | Usually tenant | Depends on lease | Often included |
| Budget predictability | Varies year to year | Partly fixed | Most predictable |
What goes into NNN charges
NNN charges are the building's operating costs, passed through to the tenant and usually quoted per SF per year on top of base rent. Typical items:
- Property taxes - the building's annual tax bill.
- Building insurance - the owner's property and liability policy on the building.
- Grounds - landscaping, parking lot care and snow removal.
- Building services - water, sewer and trash, when they are billed to the building.
- Systems maintenance - HVAC service, fire sprinkler inspection and monitoring, backflow testing and fire extinguishers.
- Pest control and other routine upkeep.
Electricity, gas, internet and janitorial are usually not part of NNN charges - on an NNN lease the tenant typically puts them in its own name. A Full Service lease can fold them into the rent instead.
To compare an NNN quote with a Full Service quote, add the NNN estimate and your expected utilities to the NNN rate, then compare that total per SF with the Full Service rate.
Which is right for you?
- Choose NNN if you want the lowest base rate, will run the space efficiently, and are comfortable with some year-to-year variation.
- Choose Full Service if you want one predictable monthly number and less to manage.
Example: what 2210 W Main St costs
We own and are leasing 2210 W Main St, a 4,000 SF building offered at $18.00 /SF/YR NNN or Full Service, with estimated NNN charges of $3.50 - $4.50 /SF/YR:
| Per SF / year | Per year | Per month | |
|---|---|---|---|
| Base rent | $18.00 | $72,000 | $6,000 |
| Est. NNN charges | $3.50 - $4.50 | $14,000 - $18,000 | $1,167 - $1,500 |
| Estimated total | $21.50 - $22.50 | $86,000 - $90,000 | $7,167 - $7,500 |
The estimate can change depending on how a tenant prefers to handle some items - for example taking over grounds maintenance or putting utility services in its own name. A Full Service lease can also include items like cleaning and electricity, or those can stay in the tenant's name. Utilities, electricity, internet and janitorial are not included in the estimate above. Estimate based on 2025 operating costs. Actual NNN charges are passed through at cost and reconciled annually under the lease.
See the 2210 W Main St listingOther office listings nearby
A few examples of other office spaces that have been advertised on public listing sites near W Main St, for comparison. We are not affiliated with these listings, and they likely change - confirm details with the listing site or broker. Have an office listing nearby and want it included here? Let us know.
| Address | Size | As advertised | Listed on |
|---|---|---|---|
| 2210 W Main St (ours) | 2,000 - 4,000 SF | Standalone building, 13 parking spaces, $18.00 /SF/YR NNN or Full Service | This site |
| 1519 W Main St | 1,000 SF | Second-floor office suite, $1,475 / month | CommercialSearch |
| 1106 W State St | 1,340 SF | Rear suite, $18.00 /SF/YR NNN | CommercialSearch |
| 1015 W Main St (Smith Block) | 3,572 SF | 12 private offices and a conference room | LoopNet |
| 1101 W Grove St | 9,607 SF building | Class A building, $23.50 /SF/YR | CommercialSearch |
| 3101 W Main St (River Front Plaza) | - | Office space on W Main St | LoopNet |
Frequently asked questions
- What does NNN stand for?
- Triple net. The three "nets" are property taxes, building insurance and common area maintenance, which the tenant pays on top of base rent.
- Is NNN or Full Service cheaper?
- The NNN base rate is lower, but once you add the NNN charges the totals are often similar. Full Service is more predictable; NNN can cost less when the building is efficient.
- What is a Modified Gross lease?
- A middle ground: some operating costs are included in rent and others are paid by the tenant. The lease lists exactly which.