I'm guessing tenants typically sign this kind of lease when they're getting a break on rent—but Stone Soup artistic director Maureen Miko says the landlord has raised the rent by 40 percent in the past year.
Most landlords do not impose the costs from what I know," Miko says. "We are victims of a neighborhood that is growing in leaps and bounds around us with all the new buildings, restaurants, and changes... We really do not want to be run out and the more the public knows, the more this can help us stay."
If you have some affection for Stone Soup, you can throw some money their way—and if you're about to sign a triple-net lease in a growing neighborhood, you might want to rethink it.
I have been informed by commenters as well as an attorney or two I know personally that I've got triple-net leases all wrong. As one attorney wrote in an email:
Not sure you quite hit the nail on the head. As usual with legal issues, it’s complicated. Among other things, an NNN lease doesn’t categorically indicate any more oppression on or vulnerability of a tenant than would a “gross lease” or “fully-serviced lease.” (You were on the right track guessing that base rent might be lower with NNN leases than with other structures). It all depends on the totality of the rent structure and the other provisions of the lease (the duration of the lease, for example). Also, I have never heard a triple-net lease be referred to around here as a “hell-or-high-water lease.” That definition in Investopedia is quite awful in other respects too.
Doesn’t it sound fascinating?
Revision of the final sentence: If you have some affection for Stone Soup, you can throw some money their way—and if you're about to take real-estate advice from me, you might want to rethink it.