Bondable Lease
A bondable lease is the most landlord-favorable form of net lease — the tenant pays rent unconditionally through any circumstance (casualty, condemnation, inability to occupy), making the lease resemble a corporate bond.
What it means
A bondable lease (sometimes called a "true triple net" or "absolute bond net") obligates the tenant to pay rent regardless of events that would typically terminate lease obligations: fire, flood, eminent domain, loss of occupancy, or change in business circumstances. The tenant bears all insurance and property risk.
Bondable leases are uncommon and typically involve very long terms (20+ years) with credit tenants. They trade at the tightest cap rates of any lease type because the landlord essentially holds a corporate bond backed by real estate collateral.
Related terms
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