What is an absolute net lease in real estate?
What is an Absolute Net Lease?
An Absolute Net Lease is a type of commercial lease where the tenant is responsible for all property-related expenses, including taxes, insurance, and maintenance, as well as major repairs and replacements, such as roof and structural elements. Unlike other net lease types (single, double, or triple net leases), where landlords may cover some repair responsibilities, an absolute net lease shifts virtually all financial obligations onto the tenant. This lease structure is often used for long-term agreements with high-credit tenants and is particularly common in single-tenant properties, such as retail or industrial real estate.