One of the most popular commercial lease types is the NNN lease, or triple net property lease. NNN properties are those where tenants pay property taxes, property insurance, and common area maintenance in addition to the lease fee.
A triple net property investment is often one of the most popular choices in commercial leasing because it offers businesses and organizations greater freedom. For instance, consider the following ways your business may benefit from investing in triple net properties.
- Greater property control
Compared to the average 1,500 square feet of an American home, the average commercial property is 19,000 square feet. When you invest in a triple net property, your business is given greater control over all 19,000 square feet. Tenants don’t have to call and wait for their landlord to come and repair the property should there be any plumbing problems or leaks. What’s more, the tenants are able to hire who they want to make repairs.
- Reduced need for maintenance
In the case of a triple net property, landlords don’t have to worry as much about putting time into maintenance efforts. The tenant handles the property maintenance, insurance, and taxes, which leaves the landlord with a reduced workload. This can be incredibly beneficial if the property owner has other properties to tend to or works a full-time job.
- Additional financing options
Single tenant properties with a triple net investment are typically written against the tenant’s credit as well as the value of the property. For this reason, those investing in commercial leasing have greater available options for financing available.
- More stable payments
A triple net lease typically spans the length of 10 years or more, which gives property owners a more stable flow of rental payments. Leases that end every few years cause landlords to search for tenants periodically or even leave their commercial properties vacant.
A triple net investment is popular in commercial leasing because it removes the landlord from the responsibility of paying operating expenses and gives tenants the feeling of actually owning the property. To learn more about how your business can benefit from a triple net investment, contact Sands Investment Group today for more information.