Investing in commercial real estate can bring about many advantages in the form of low-touch income or a diversified portfolio. But not all commercial leases are the same, and even leases of the same type can have varying factors and deal details. In short, every commercial lease is usually as unique as the property itself, so it’s very important that you understand all the particulars and fine print of any property you’re considering adding to your portfolio.
Triple net lease properties are rich in opportunity for both property owners and tenants alike. As an investor, you can create a reliable income stream from your property, and as a tenant you can establish a footprint for your business.
However, there are going to be expenses associated to maintaining your triple net property, from standard operating expenses to structural repairs to keep the building updated, safe, and profitable.
Insuring your triple net lease property is an important component of protecting your investment. While insurance is a known necessity for any type of property, there are some added complexities to commercial buildings that you need to understand so you can properly negotiate your tenant contracts and avoid the profit-stealing scenario of learning you’re not covered for something that’s happened to or on your property, only after the fact.
When you feel confident in your investment strategy, it’s easy to avoid reviewing your commercial real estate investment portfolio. However, an annual analysis of your portfolio and property can make a significant difference in your profit return by identifying what is working and what is not working for you.
Why invest in a triple net property? Because single-tenant triple net properties can provide some of the most reliable income streams in the commercial real estate investment industry. Period.
For investors at virtually all levels, it can be a smart move to invest in the commercial real estate market. Not only can commercial property investments provide you with a significant return, but they can also give you a great way to diversify your financial portfolio. Read more