Triple net real estate is very beneficial to investors who are looking for a relatively low-risk investment (with little to no involvement as a landlord) that provides solid, predictable returns over the long-term.
NNN locations tied to established brands like Starbucks can be especially coveted in net lease real estate because they typically come with a recognizable brand, premium locations, and the potential for growing returns as the property owner.
If you’re interested in a Starbucks for sale (NNN), here are 3 important things you should consider.
Location, Location, Location
As with any type of real estate, location is a key factor in NNN properties for sale as well. Both the geographical location and the physical location of the NNN property will help determine the success and longevity of the business as well as your investment in the building a tenant uses to run their business.
Hyper-growth areas that are experiencing a higher than usual influx in population and economic growth are ideal locations to investigate for NNN lease property opportunities. If people are moving to an area, causing it to grow quickly, the local economy will typically see a significant lift.
Even though triple net lease investments are low-touch from an investment standpoint, you should consider the longevity of the business operating in the location you’re considering. You want a business that has longevity and is not prone to shifts in technology or the economy. In short, you want a location housing a business that sells things people will always need. Some examples of desirable net lease real estate properties with longevity include:
- Convenience Stores
- Dollar Stores
- Gas Stations
- Fast Food Locations
- Grocery Stores
- Medical Facilities
A Starbucks NNN for sale in a booming, thriving city and economy is a great investment with a recognizable brand and a strong following of loyal customers. However, these types of NNN properties are highly sought-after investments, so you can expect to pay premium rates and be up against some competition and offers from other like-minded investors.
Proximal Businesses and Traffic
An important part of a triple net property’s location is what other businesses surround it, and how accessible the location is for patrons. You should look for net lease properties that are in areas with good traffic and have close proximity to established businesses that will help draw in customers to your location as well. Corner locations are the most desirable as they’re easy to access and add a bit of prominence to your location as well.
NNN Lease Terms and Rent
In a triple net lease, the tenant will be responsible for a vast majority of the operational expenses of a building, such as taxes, insurance, and maintenance. However, every NNN lease deal is as unique as the property itself, and terms can vary greatly from one property to another.
Each lease is specific to the terms that have been negotiated, so it’s important to know those terms beforehand. Otherwise, you may find yourself with limited profits due to unexpected costs that come up, which you didn’t know fell under your obligations.
For example, some deals may require that you take out certain net lease insurance policies and cover those premiums, or it may be outlined that the property owner is responsible for maintenance on certain parts of the building such as the structure and roof. Knowing ahead of time what financial responsibilities you have as the property owner will help you determine the profitability of your investment and keep surprises from cutting into your investment down the line.
Sands Investment Group is knowledgeable in all types of triple net leases (including highly sought-after locations like Starbucks). We’re the fastest growing net lease investment company in America, with over 1,900 transactions in 48 states (worth $4.5 Billion) since 2010 and have the expertise to advise you on all the key factors you should be considering in your NNN investments.
Want to learn more about Starbucks NNN for sale and speak with an industry expert about your next investment? Get in touch with an expert today by calling 844.4.SIG.NNN or sending us an email at info@SIGnnn.com.