What defining feature does a Triple Net lease (NNN) have?

A Triple Net lease (NNN) is characterized by the operator or tenant taking on the responsibility for most property expenses, including property taxes, insurance, and maintenance costs. This lease structure shifts the financial obligations traditionally held by the landlord onto the tenant, allowing the landlord to have a more predictable income stream without the burden of managing these expenses.

In this type of lease, the operator is responsible for managing the day-to-day operational costs associated with the property, which means they have a significant level of responsibility and are incentivized to maintain the property well since they bear the costs of upkeep. This arrangement can often lead to enhanced responsibility on the part of the operator to maintain the value of the asset.

The other options do not accurately reflect the nature of a Triple Net lease. For instance, a Triple Net lease does not entail the landlord covering all property expenses, nor does it allow the operator to have no maintenance obligations. Additionally, there is typically no profit-sharing model included in a Triple Net lease; instead, the lease structure itself is more straightforward, focusing on the partition of operational costs. Thus, option B aptly captures the essence of what a Triple Net lease entails.