Triple net properties are quite attractive to investors who want a steady, predictable income stream (that is also low-risk, low-touch, and long-term). This is because, in general, the vast majority of the financial responsibilities hinged to the building itself are passed along to the tenant in an NNN lease.
Single tenant net lease properties are freestanding business locations that have just one tenant occupying the entire space. In contrast, multi-tenant properties (such as strip malls or shopping centers) have multiple spaces that are all occupied by different businesses. Single net leases are becoming a more a popular investment choice as the popularity of malls dwindles and due to the many perks they offer for an investor (and a tenant who gets to be the sole business and brand operating in the building).
Market shifts and changes can have a drastic impact on your triple net property investments. From what types of buildings and businesses will be most stable and lucrative, to when and where to buy an NNN building for your portfolio, you should keep a keen eye on the market trends that are unfolding.
There are some big things underway in the realm of single tenant net leases, but trends can often be difficult to navigate as you try to determine which will be fleeting and which could have longer-lasting impacts on your NNN investments.
Triple net lease real estate can be a very stable, long-term source of reliable income with many advantages for both property owners and tenants. However, it can also often be an overwhelming task to find the perfect triple net property and determine the best opportunity among a sea of choices. Additionally, net lease properties can come with a tenant already in place, which means there will be contract details that you need to understand fully so you know exactly what financial responsibilities you’re signing up for by purchasing the property and entering the existing net lease agreement with the tenant.
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