| Comparing Lease Structure | |||
| Bond Type leases provide the most security and permit the best financing. NNN leases provide many Bond Type benefits and can sometimes be enhanced with specialized insurance products. | Type of Lease | ||
| Provisions | NN | NNN | Bond |
| Tenant is responsible for base rental payment and all cost of operation; including real estate taxes, insurance, utilities, and maintenance | X | X | |
| Properties financed with conventional (Loan to Value Ratio 70-75%) usually amortized over 25 to 30 years, often with 10th year balloon | X | X | X |
| May be financed with long term fixed-rate, no balloon debt (coterminous with lease) | X | X | |
| Lease Structure of most commercial leases | X | ||
| Tenant may assign or sublease; but, generally remains unconditionally liable for lease performance | X | X | |
| Tenant performs all obligations related to the leased premises and is fully responsible, regardless of what occurs with the leased premises | X | ||
| No rent offsets in the event of casualty or condemnation | X | ||
| Specialized insurance products may be utilized to enhance lease and financing structure | X | X | |