CaseMark Triple Net Lease (NNN)
Produces a transaction-ready NNN commercial lease with precise expense allocation, remedies, and execution mechanics.
Prerequisites
Collect before drafting:
- Parties — legal names, entity types, formation states, authorized signatories.
- Premises — address, suite/unit, RSF (BOMA standard), legal description, APN, parking/common-area rights.
- Term Sheet / LOI — rent schedule, escalations, TI allowance, concessions, renewal/expansion options.
- Property Context — single- vs multi-tenant; CAM structure; CC&Rs; exclusive-use limits.
- Use & Compliance — permitted use, zoning confirmation, licensing, ADA allocation.
- Insurance Targets — coverages, limits, carrier ratings (A.M. Best), additional insureds.
- Finance / Title — lender requirements, SNDA, subordination expectations.
- Exhibits — site plan, rules/CAM, work letter, estoppel form, SNDA form.
Quick Start
- Complete the deal intake table below — flag any gaps before drafting.
- Assemble clauses in the prescribed draft order.
- Populate the maintenance matrix and insurance schedule.
- Fill default/cure periods per jurisdiction.
- Run the pre-execution checklist before circulating.
Deal Intake Table
| Field | Required Detail | Source |
|---|---|---|
| Parties | Names, entity type, formation state, signatories | Formation docs, LOI |
| Premises | Address, suite, RSF, legal description, APN | Title, survey, deed |
| Term | Commencement trigger, expiration, options | LOI |
| Base Rent | Annual/monthly, payment method, proration | LOI |
| Escalations | Fixed %, CPI index/base, FMV process | LOI |
| Concessions | Free rent, TI allowance, recapture | LOI |
| NNN | Taxes, insurance, maintenance, CAM | LOI |
| Use | Permitted use, prohibited uses | LOI |
| Alterations | Consent standard, ownership, restoration | LOI |
| Assignment | Consent standard, recapture, liability | LOI |
| Defaults | Notice/cure, remedies, mitigation | Jurisdiction |
| Exhibits | List and status | Deal file |
Draft Assembly Order
- Definitions and premises
- Term and rent schedule
- NNN expenses and reconciliation
- Maintenance matrix
- Use, compliance, and alterations
- Transfers and subletting
- Insurance and risk allocation
- Defaults and remedies
- Miscellaneous / boilerplate
- Exhibits and signature blocks
Core Clause Checklist
- Premises — legal description; RSF standard; parking and signage rights
- Term — commencement trigger; delivery condition; commencement certificate
- Base Rent — due date, method, proration formula
- Escalations — fixed/CPI/FMV; caps/floors; process timeline
- NNN Expenses — taxes, insurance, maintenance; pay-direct vs reimburse
- CAM — allocation formula, exclusions, audit rights, reconciliation timing
- Insurance — coverages, limits, carrier rating, additional-insured language, certificates
- Maintenance — tenant vs landlord responsibilities; capital items
- Use / Compliance — permitted use; zoning; permits; ADA allocation
- Alterations — consent standard; contractor requirements; ownership
- Assignment / Subletting — consent standard; criteria; recapture; profit split
- Default / Remedies — notice/cure; mitigation; fees; acceleration limits
- Indemnity — carve-outs for landlord negligence where required
- Casualty / Condemnation — rent abatement; termination rights
- SNDA / Attornment — lender protections and non-disturbance
- Notices — methods, deemed receipt, address changes
- Execution — authority, notary/witness if required
Maintenance Responsibility Matrix
Insert as exhibit or inline section. Assign each item to tenant or landlord.
| Item | Tenant | Landlord | Notes |
|---|---|---|---|
| Roof | ☐ | ☐ | Caps or thresholds? |
| Foundation | ☐ | ☐ | Structural only |
| Exterior walls | ☐ | ☐ | Load-bearing? |
| HVAC | ☐ | ☐ | Service contract required |
| Plumbing | ☐ | ☐ | Serving premises |
| Electrical | ☐ | ☐ | Panels, lighting |
| Interior | ☐ | ☐ | Floors, walls, finishes |
| Parking / Drive | ☐ | ☐ | If exclusive |
Insurance Schedule
| Coverage | Limits | Additional Insureds | Notes |
|---|---|---|---|
| CGL | $___ per occ / $___ agg | Landlord, lender | Primary / noncontributory |
| Property | Replacement cost | Loss payee as needed | Tenant property / TI |
| Umbrella | $___ | Landlord, lender | If required |
| Workers' Comp | Statutory | N/A | If employees |
| Special | Liquor / pollution / prof | As needed | Use-specific |
Default and Cure Framework
- Monetary default: ___ days after written notice.
- Non-monetary default: ___ days after written notice; extendable if cure commenced and diligently pursued.
- Repeat default: no cure for repeated defaults within ___ months.
- Remedies: termination, re-entry, reletting, damages, costs, fees, interest at max lawful rate.
- Mitigation: include or exclude per jurisdiction.
Standard Exhibits
- A — Legal description
- B — Site plan / premises plan
- C — Rules and regulations / CAM detail
- D — Work letter / TI specs
- E — Estoppel certificate form
- F — SNDA form
- G — Rent schedule / escalation grid
Pre-Execution Checklist
- All blanks completed or bracketed
- Rent schedule and escalation math verified
- NNN allocations align with CAM definitions
- Notice addresses confirmed
- Certificates of insurance ready
- SNDA form approved by lender
- Authority documents for signatories
Pitfalls
- Use specific permitted-use language; avoid vague "retail/office" unless intentional.
- Confirm statutory notice/cure periods and mitigation duties in the property's state.
- Jury trial waivers require conspicuous formatting and local enforceability review.
- Do not draft indemnity that violates anti-indemnity statutes (landlord negligence carve-outs).
- Late-payment interest must not exceed the maximum lawful rate for the jurisdiction.
- In multi-tenant properties, exclude capital improvements from CAM unless amortized.
- Clarify tax appeal rights and allocation of savings/costs.
- If term exceeds local recordation thresholds, include a recording memorandum with notary requirements.
- Run a defined-term audit — verify all definitions and cross-references are consistent.