Glossary

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Absolute Net
Absolute net is a lease that requires the tenant to pay, in addition to base rent, all costs associated with the operation, repair and maintenance of the building. The absolute net lease is a variation of a triple net lease. Under a triple net lease the tenant agrees to pay all real estate taxes, maintenance and insurance in addition to all other normal costs such as rent and utilities. The absolute net lease, also known as a bondable lease, adds every other financial risk of the space to the tenant. These additional risks include obligation to rebuild after a casualty and paying rent in the event the building becomes condemned. An absolute net lease is typically used when the landlord has borrowed money to finance a property and pledges the rent to be collected as security for the debt.