Understanding Essential Real Estate Terms: MLS, NNN, and Concessions Explained

By Daniel RodriguezLast Updated May 6, 2025

Introduction: Navigating the Language of Real Estate

Whether you are buying, selling, or investing in property, understanding the language of real estate is crucial for making informed decisions. Three common terms- MLS , NNN , and concession -often come up in listings, negotiations, and contracts. This guide unpacks each concept, provides real-world examples, and offers actionable advice on how to leverage these terms for your benefit.

What Does MLS Stand For in Real Estate?

MLS stands for Multiple Listing Service . It is a comprehensive database created and maintained by real estate professionals to facilitate the buying and selling of properties. The MLS allows cooperating brokers to share detailed information about properties, making the market more transparent and efficient for both buyers and sellers [1] [2] [3] .

How Does the MLS Work?

When a real estate agent gets a listing agreement with a property seller, they add the property details-such as price, photos, features, and square footage-to the MLS. Other agents, representing buyers, can view these listings and arrange showings. The MLS ensures that properties get maximum exposure and that buyers have access to the most current, accurate information available [3] .

Who Can Access the MLS?

Access to the MLS is generally limited to licensed real estate professionals who pay for a subscription. However, your agent can share MLS information with you, including property details, photos, and market comparisons [4] . Many online platforms display portions of MLS data for public viewing, but the most comprehensive and up-to-date information comes directly from agents.

Benefits of Using the MLS

For Buyers: You gain access to a wide range of properties, often before they appear elsewhere.
For Sellers: Your property reaches a larger pool of potential buyers, increasing the chances of a successful sale.
For Agents: The MLS fosters cooperation among agents, making transactions smoother and more reliable.

To use the MLS, consider contacting a licensed real estate agent in your area. You can search for agents via your state’s real estate licensing board or through major real estate brokerage websites. Ask your agent to set up custom property alerts and provide you with detailed market analyses based on MLS data.

What Does NNN Mean in Real Estate?

NNN stands for Triple Net Lease , a common lease structure in commercial real estate. In a triple net lease, the tenant is responsible for paying not just the base rent, but also the property’s
net
property taxes,
net
building insurance, and
net
maintenance costs (commonly referred to as CAM, or Common Area Maintenance). This shifts much of the ongoing property expense burden from the landlord to the tenant.

Breaking Down the Triple Net Lease

Net Taxes: Tenant pays all property taxes related to the leased space.
Net Insurance: Tenant covers the cost of building insurance premiums.
Net Maintenance: Tenant handles expenses for repairs, upkeep, and shared areas.

Under an NNN lease, tenants may also be responsible for utilities and other operational costs, depending on lease terms. This arrangement is especially popular for retail spaces, office buildings, and industrial properties.

Advantages and Considerations

For landlords: NNN leases provide predictable income and reduce management responsibilities, making them attractive for investors seeking passive income. For tenants: NNN leases often offer lower base rent compared to gross leases, but tenants must budget for additional costs and closely review lease clauses to avoid unexpected expenses.

Before signing an NNN lease, tenants should:

Request a full breakdown of estimated annual expenses.
Clarify which repairs and capital improvements are their responsibility.
Review the lease with a commercial real estate attorney.
Ask for historical expense records to better anticipate future costs.

Alternatives to NNN leases include
gross leases
(where the landlord pays all or most expenses) and
modified gross leases
(where costs are shared in various ways). Each option has distinct implications for cash flow and risk-choose based on your risk tolerance, management capacity, and financial objectives.

What Is a Concession in Real Estate?

A concession in real estate refers to any special benefit or incentive that a seller, landlord, or property manager offers to make a deal more appealing to a buyer or tenant. Concessions are used to bridge gaps in negotiations, attract interest in slow markets, or help close deals that might otherwise stall.

Common Types of Concessions

Seller Concessions: Covering a portion of the buyer’s closing costs, prepaying property taxes, or including home warranties.
Landlord Concessions: Offering free rent for a certain period, providing upgrades or amenities, or reducing the security deposit.
Buyer/Tenant Concessions: Accepting a property “as is” or agreeing to a quicker closing date.

For example, in a buyer’s market where homes linger on the market, sellers may offer to pay for the buyer’s closing costs as a concession to encourage a sale. In commercial leasing, landlords might grant several months of free rent at the beginning of a lease term to attract a high-quality tenant.

How to Negotiate and Access Concessions

Securing a concession starts with understanding market conditions and your own leverage. Consider these steps:

Research comparable offers: Ask your agent for a list of recent transactions with concessions in your target area.
Identify your priorities: Decide which concessions are most valuable to you (e.g., closing cost assistance, rent abatement).
Make a targeted request: Present your request as part of your offer or negotiation. Be clear but flexible-sometimes a smaller concession can be combined with another term for a win-win outcome.
Document everything: Ensure all agreed-upon concessions are clearly stated in the purchase agreement or lease contract.

If you are unsure how to approach concessions, ask your real estate agent for guidance. Experienced agents can often identify creative ways to structure concessions that meet both parties’ needs.

Practical Guidance for Buyers, Sellers, Tenants, and Landlords

If you are a buyer or tenant , working with a licensed real estate agent gives you access to MLS data and expert negotiation strategies. You can find agents through your state’s real estate licensing authority or established brokerages. For sellers and landlords , consider joining your local or regional MLS through a brokerage to maximize your property’s exposure. For commercial investors, review NNN lease templates and calculate expense scenarios before committing to any agreement.

It is also wise to consult with a real estate attorney or certified public accountant (CPA) for complex lease structures or large transactions to ensure you understand the legal and tax implications of concessions or specialized lease terms.

Key Takeaways

MLS is a broker-driven database that streamlines property marketing and search for buyers and sellers.
NNN (triple net) leases pass most property expenses to tenants, making them popular for hands-off investors and financially prepared tenants.
Concessions are negotiable benefits that can bridge gaps and enhance deals for both buyers/tenants and sellers/landlords.

For further information, you can:

Search for “Multiple Listing Service” via the National Association of Realtors or your local real estate board.
Review commercial lease guides from recognized industry groups.
Contact your state’s real estate regulatory agency for agent verification.