The triple-net lease is when the master lessee completely leases the replacement property under an escalating annual lease payment plan. The lessee takes on the responsibility to sublet the property. In addition to rent, taxes, insurance and maintenance, the master lessee also pays the debt-carrying expenses.

TIC interests combined with a NET lease provide the real estate buyer with the advantages of ownership in a larger property with appreciation, cash flow and annual depreciation benefits without many of the management problems associated with individually-owned rental property.

The triple-net lease ends whenever the Tenants-in-Common (TIC) vote to terminate it or, in any event, when the TIC owners sell the entire property.