What Are Industrial Operating Expenses (OPEX) & NNN Leases? A Quick Guide for Tenants
If you’re searching for industrial properties, you’ve probably come across terms like NNN lease, OPEX or CAM charges. These can be confusing, especially if you’re new to commercial real estate. So, what exactly are operating expenses - and how do they affect your bottom line as a tenant?
In this guide, we’ll break down Industrial Operating Expenses (OPEX), Triple Net (NNN) leases, and Common Area Maintenance (CAM)—so you can navigate your next lease with confidence.
What Are Operating Expenses (OPEX) in Industrial Real Estate?
Operating Expenses (OPEX) are the costs associated with operating and maintaining a commercial property. In industrial real estate, these expenses are typically passed through to the tenant on top of their base rent. You might also hear these called NNN costs or triple net charges.
When you sign a Triple Net (NNN) lease, you’re agreeing to pay:
Real Property Taxes
Building Insurance
Common Area Maintenance (CAM)
This lease structure shifts the responsibility for these expenses from the landlord to the tenant. For property owners, this creates a “net” investment, where they receive rental income without covering day-to-day property expenses.
What Does CAM Include?
Common Area Maintenance (CAM) refers to the upkeep of shared areas used by multiple tenants. This can include:
Parking lot maintenance & lighting
Landscaping & irrigation
Roof repairs & replacements
Trash disposal & pest control
Sidewalk & exterior repairs
Snow removal (especially relevant in Northern Nevada)
Capital improvements (spread over time)
Administrative costs associated with property management
These shared expenses are allocated among tenants based on the size of their leased space relative to the total property.
What OPEX Does Not Cover
While OPEX covers shared and structural expenses, it does not include costs directly tied to your individual space, such as:
Separately metered utilities (gas, electric, water)
Interior janitorial services
Repairs or maintenance for flooring, plumbing, electrical, windows, doors, ceilings, or walls inside your suite
These are typically your sole responsibility as a tenant.
Why Understanding OPEX Matters
Before signing a lease, it’s essential to review the operating expense clauses carefully. A well-written lease should clearly define:
What is included in OPEX
How expenses are allocated
Your annual increase limits (if any)
Partnering with a knowledgeable industrial real estate agent can help you avoid surprises and ensure you’re comparing properties on an apples-to-apples basis.
Need Help Navigating Industrial Leases?
Whether you’re expanding, relocating or leasing your first warehouse space, working with a local expert can save you time, money and headaches.
📞 Contact Beki Dobson, SIOR at Miller Industrial Properties
Let’s simplify your search for the right industrial property in Northern Nevada.
