Net Lease/Triple Net Lease Inspections
For net or triple net leasing (NNN), it is important to document existing conditions at the very onset of the term to establish the baseline condition of the property. It is not unusual for landlord/tenant disputes to arise at the end of the lease over discrepancies as to the buildings care and maintenance during the term of the lease. Often, this results in litigation over the return of security funds. Claims are commonly made that the tenant has not properly exercised sufficient or adequate preventive maintenance resulting in excess physical deterioration or system/component failure. In response, tenants belatedly claim pre-existing conditions with no substantiated documentation.
Commercial Building Inspectors thoroughly and independently examine and document the property’s existing conditions at the onset of the lease. The reports are well documented with pictures and descriptions and may even include video. These reports may never be required; however, they can quickly be accessed to resolve outstanding issues during disputes if needed.
It is recommended by NACBI that leasers maintain several copies of this report and safeguard the original. A good rule of practice is to place the original in a safe or safety deposit box and provide certified copies with your legal firm, bank or other representative. Most Commercial Building Inspectors keep a copy of the report and supporting documents on file for seven years or more if needed.
Where Can You Order a PCA for a Net or Triple-net lease?
NACBI members specialize in property condition assessments for net or triple-net leases. Our professional members have prepared PCA’s on all property types throughout North America. We are ready to answer your question and guide you through the entire process. For more information on PCA’s for net or triple-net leases use our convenient Commercial Inspector Locator system or request a proposal/consultation using this convenient form.