4 Trends Driving Triple Net Lease CAP Rates

The Capitalization Rate (or Cap Rate) is a term used heavily in the triple net lease real estate industry, and this calculation (expressed as a percentage) demonstrates the expected rate of return on a real estate investment. Cap rates are determined based on the net income a property is anticipated to generate and give investors an idea of how lucrative a triple net investment is compared to others on the market.

Read more

How Does a Triple Net Lease Work?

Net lease real estate offers great benefits for investors and tenants alike, and as you’re researching your commercial investment opportunities, you’re probably coming across a lot of different net lease types that you may have thought were all virtually the same, but the truth is that the type of net lease in place on an investment property actually plays a big role in what types of returns you can expect and what financial obligations you’ll have as the property owner.

Read more

What Does the Landlord Pay in a Triple Net Lease?

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.

Read more

5 Advantages of Single Tenant Net Lease Financing

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).

Read more

4 Things to Know about the Single Tenant Net Lease Market

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.

Read more

What Is a Net Lease Advisor?

Triple net lease real estate can 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.

Read more

4 Things to Know about Triple Net Lease Tenant Improvements

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.

Read more

Triple Net Lease Insurance: What’s Covered (and What’s Not)?

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.

Read more

What Should You Know about Commercial Lease Escalation Rates?

Commercial real estate contracts typically include detailed lease escalation clauses and rates that outline how and when increases to rent or operating costs will occur (and how both the property owner and the tenant are impacted as a result).

While the presence of lease escalations is very common in commercial agreements, there are many variables to how each escalation will work and what types of rate increases, or reductions will apply. It’s important to understand the different types of lease escalations and know exactly what each will ultimately mean for the profitability of your investment in the short- and long-term because some escalations take place annually, while others are every couple of years or at the beginning of a new lease term.

Read more

What Is an Absolute NNN Ground Lease?

As an investor interested in commercial property for lease, you probably already understand some of the types of commercial lease opportunities available to you on existing buildings, such as triple net (NNN) leases and absolute NNN leases. However, there is another route you can consider when scoping out absolute NNN properties for sale, which can be more advantageous for conservative, long-term return investments: an absolute NNN ground lease.

Read more

What Is an Absolute NNN Lease?

The kind of tenant agreement in place on a commercial property for lease is an important consideration for an investor. There are a variety of different lease options available on commercial properties, including gross, net, triple net, and absolute NNN leases, which all may have specifications or variations unique to that lease/lessor agreement. Read more

Net Lease vs Triple Net Lease: Your Guide to Single Tenant Investments

Net leases are becoming an increasingly attractive option for investors looking for a stable, hands-off investment property.

A quick refresher; a net lease requires tenants to pay for some property expenses the owner would typically cover. These added costs are in addition to their rent and may include things like utilities, maintenance, real estate taxes, and insurance.

In general, a net lease renter is going to be a single tenant of a free-standing building. So, this might include a bank, a fast food restaurant, or a store. Read more

Net Lease vs Gross Lease: What’s the Difference?

As a commercial real estate owner or someone looking to invest in a commercial property, you want to develop a steady income stream that will make your investments profitable and worthwhile. A large part of your success will be dependent on the individuals or businesses you attract as renters for your property, and how you handle those relationships as part of your investment over the long-term. Read more

Single Net Lease Vs. Triple Net Lease: What’s The Difference?

When it comes to commercial property investing, potential property owners will often see properties with different net lease types. In 2015 alone, investment in the U.S. commercial real estate market surged by 85%. Net leases are the type of real estate lease that tenants use to pay additional expenses on top of their rent. Read more

triple net property investment

Is Investing In Triple Net Properties Right For Me?

Have you been considering a triple net property investment? With stock market volatility, low interest rates, and the slow recovery of the economy, demand for commercial real estate industry services has grown in recent years. In fact, the commercial real estate industry grew annually by 3.9% between 2012 and 2017. Read more

Triple Net Leasing 101

Triple Net Leasing 101

Get answers and insight from America’s fastest growing net lease company.

When savvy commercial real estate investors are looking for assets, they understand that not all lease agreements are created equally. And while a net lease is a popular choice, perhaps no lease agreement offers more benefits for property owners and investors than triple net leasing. In fact, many commercial real estate investors consider the triple net lease the most advantageous of investments. Read more