What is a triple net expense?

Commercial leases frequently call for the the tenant to pay “triple net” expenses in addition to the base rent. But what is a triple net expense?

Triple net expenses (also written as NNN expenses) are building expenses that the landlord charges the tenant based on the tenant’s pro rata share of the building. The expenses include the property taxes, building hazard insurance, and common area maintenance. Those expense can vary widely from building to building, so it is critically important that you understand what the charges will be before you sign a lease. For an office or retail building in Jackson Hole, the NNN expenses typically range from $3.00 to $7.00 per square foot per year. For a 2,000 square foot lease, that means the NNN portion of the rent could add between $6,000 to $14,000 to the annual rent.

The rates vary because taxes may be higher or lower for different buildings, and because some buildings are more or less efficient to maintain. For example, a building with a large yard and/or parking lot will have significant landscaping and snow removal expenses, while a downtown building with no yard will not have that expense.

A knowledgeable commercial leasing agent will be able to advise you on NNN rates for various buildings, and will be able to give you the expenses for comparable buildings to guide you to an informed decision.

How to Calculate Jackson, WY Property Taxes

Wyoming has a well deserved reputation for low taxes, having no state personal or corporate income tax, and having a very low property tax rate. Here’s how to calculate property taxes in Jackson Hole (Teton county, Wyoming).

Property taxes are calculated by multiplying the mill levy by the assessed value, and the assesed value is equal to the market value times 9.5%. The mill levy is generally given as an amount per $1000 dollars of value, so before multiplying the levy by the assessed value, you should move the decimal point on the levy to the left by three places. Here’s an example.

Let’s say the property is worth $1,000,000, and the mill levy is $57.42.

Multiply $1,000,000 (market value) by 9.5% to get $95,000 (assessed value).

Now multiply $95,000 (assessed value) by 0.05742 (mill levy divided by $1,000) to get $5,454.90 (annual taxes). That’s it!

By way of recognizing how low that is, the annual taxes on that property work out to be just over half a percent of the value of the property, while in Texas, the taxes would be over 3% of the value of the property.

Now that you know how, I’ll show you an easier way…click here and enter the owner’s name or street address of the property. The county treasurer’s website will not only tell you the amount of the current taxes, but whether they have been paid, and what the taxes for the past few years have been. Are yours paid up?