Quick answer: A triple net lease (NNN) means you pay base rent plus your share of the building's three big costs: property taxes, building insurance and common area maintenance. In Vancouver, that second number (called "additional rent") can add a lot to your monthly bill, and it can change every year. Triple net is the most common lease for retail space in this city, so if you're about to sign for your first shop, café or studio, here's how it works, what it really costs, and the clauses to read twice before you sign anything.
What Is a Triple Net Lease, in Plain English?
In a triple net lease, the landlord passes the main costs of owning the building through to the tenants. The three "nets" are:
Property taxes
Building insurance
Common area maintenance (CAM), which covers things like common area utilities, cleaning, landscaping, repairs, security and property management fees
You pay these on top of your base rent (sometimes called "basic rent" or "minimum rent"). Together, these pass-through costs are called additional rent, and in a multi-tenant building you pay your proportionate share, usually based on your square footage compared to the whole building.
If you want the full lineup of lease types (gross, modified gross, single net, double net and percentage leases), I break them all down in Explained: Types of Commercial Leases. Short version: triple net puts the most cost and risk on the tenant and the least on the landlord.
How Much Does a Triple Net Lease Cost in Vancouver?
Two numbers matter, and listings online only often show you one.
Base rent. Per square foot, per year. Your base rent is pre-negotiated and set for your contracted term.
Additional rent. Fluctuates per year depending on operating and holding costs of the property at hand. It is quoted as “estimated additional rent” per square foot per annum.
Here's a hypothetical example so you can see how it adds up. Say you're looking at a 1,200 square foot space:
Base rent: 1,200 x $45 = $54,000 a year, or $4,500 a month
Additional rent: 1,200 x $18 = $21,600 a year, or $1,800 a month
Total before GST: $6,300 a month
GST at 5%: about $315, for roughly $6,615 a month
See what happened? The "$45 a foot" space is really a $63 a foot space once you add triple net, before GST. Always budget on the total, never on base rent alone. GST at 5% generally applies to commercial rent when the landlord is GST registered, and registered businesses can usually claim it back as an input tax credit. Your accountant can confirm how that works for you.
Why Can Additional Rent Go Up So Much in Vancouver?
This is the part that catches first-time tenants off guard.
Property taxes are based on the land, not just the building. BC Assessment values property at its "highest and best use." So a tired one storey building on a street that's zoned (or planned) for a six storey mixed-use building can be assessed on what the land could become. On a triple net lease, you're the one paying that tax bill, even though you're only using the one storey.
That's why I always tell commercial clients to look at the area plans before they sign a long lease. If a street is being rezoned for more density, land values and taxes can climb. I wrote about why you should read community plans before buying or leasing, and it applies to tenants just as much as buyers.
The City of Vancouver does offer some relief programs. In 2026 it continued a pilot Development Potential Relief Program for certain Class 5 (light industry) and Class 6 (business) properties, which lowers the City's portion of property tax on part of the land value. It also offers 5-year land assessment averaging to phase in big assessment jumps for eligible properties. Eligibility rules are strict, and the City's program information doesn't require landlords to pass savings on to tenants (owners are asked to tell tenants if a property is eligible). So ask your landlord: "Is this property enrolled in either program, and how does it show up in my additional rent?"
What Is the Year-End Reconciliation, and Why Should I Care?
Most landlords estimate your additional rent at the start of the year and bill you monthly. After year end, they compare the estimate to the actual costs. Then you get either a credit or a bill for the difference.
Using our example, if the estimate was $18 a foot but actual costs came in at $22, that's $4 x 1,200 square feet = a $4,800 bill, often arriving months after the year ended. Picture it: you've just survived a slow, drizzly February, and an invoice for last year's taxes lands in your inbox. Not great news.
Ask for the last two or three years of actual additional rent numbers, not just this year's estimate. If the estimate looks low compared to past years, that's a yellow flag.
What Should I Look For in the Lease Before I Sign?
Here's what I read closely with every retail tenant:
What's included in operating costs. Some leases let landlords include capital or reserve charges. Typical exclusions are structural repairs, the landlord's financing costs, leasing commissions and costs recovered from insurance. Get the list in writing, consult with your lawyer before signing a lease.
Management or administration fees. Many leases add a management fee on top of operating costs. Check whether it's allowed, how it's calculated and if there's a limit.
Your proportionate share. Confirm the square footage used and the total building area it's divided by.
Audit and backup rights. Can you ask for invoices and records to support the reconciliation? You want that right.
Repair responsibilities. Who handles the roof, HVAC, plumbing and storefront glass? On some triple net leases, it's you.
Demolition or relocation clauses. On redevelopment-friendly streets, a landlord may want the right to end the lease early. Know what notice and compensation you'd get.
Leasing is part of due diligence, just like buying. My post on what due diligence looks like in commercial real estate walks through the professionals worth having on your side. For a lease, that's at minimum a commercial lawyer and an accountant, plus a REALTOR® who knows commercial.
Can I Negotiate a Triple Net Lease?
Often, yes. The structure itself is usually standard for retail, but the details are not set in stone. Depending on the space and the market, tenants sometimes negotiate:
A cap on increases to certain controllable operating costs
A fixed or capped management fee
Free rent or a tenant improvement allowance to help with your build-out
A semi-gross structure, where some costs (like taxes) are folded into a higher base rent so you're protected from big jumps
None are guaranteed, but they're worth asking about, especially for a space that's been sitting empty a while.
The Bottom Line
Triple net = base rent plus your share of taxes, insurance and maintenance.
Budget on the total cost per square foot, plus GST, not the advertised base rent.
In Vancouver, land value drives property tax, so check zoning and area plans.
Ask for past years' actual additional rent and understand the year-end reconciliation.
Have a commercial lawyer review the lease before you remove conditions.
There's nothing better than watching a first-time business owner turn on the lights in their own space for the first time. I want you to get there with a lease that makes sense for the long haul. If you're hunting for your first storefront, or you've got a lease sitting on your kitchen table right now, call or text me. I'll happily walk you through it.
Written as of October 31, 2026.
This blog is for informational purposes only and should not be relied upon for legal, investment, mortgage or other advice. It is not intended to cause or induce breach of an existing agency agreement. All information provided is deemed reliable but is not guaranteed and should be independently verified.
Nevada Cope PREC* 604-897-6971 nevadacope@gmail.com eXp Realty Suite #1500 - 701 West Georgia, Vancouver
