Tag Archive for: triple net investment

The early education sector is emerging as a hotbed of commercial real estate investment, driven by profound demographic shifts and economic changes. Despite disruptions during the pandemic, demand for modern early education facilities continues to grow, making the future of this property type promising for savvy investors. Let’s explore the key factors shaping this opportunity and why now is the time to invest in the future of early childhood education.

1. Shifting Demographics & Post-Pandemic Recovery

Urban and suburban areas are seeing a surge in young families seeking quality early education for their children. While COVID-19 caused enrollment to plummet—dropping from 54% to 40% for 3- to 4-year-olds between 2019 and 2020—there’s been a steady recovery. By 2021, enrollment climbed back to 50%, and the trend continues upward.

Adam Bridges, Senior Investment Advisor at Sands Investment Group, notes, “We’ve seen a strong bounce back in childcare enrollments post-pandemic, which is encouraging for investors looking at performance at the unit level.”

This recovery presents an opportunity to meet the growing demand for innovative, high-quality facilities, especially as more parents re-enter the workforce. With young families and strong employment rates driving the need for modern learning environments, now is the time to invest in this resilient market.

2. The Impact of Expiring Pandemic Funding

As pandemic-related financial support for early education facilities ends, there’s a shift towards long-term sustainability. During the crisis, many centers relied on federal grants, but now the focus is on operators who can thrive independently.

Bridges explains, “When underwriting a center, we factor out pandemic grant money to ensure long-term viability. Investors need to pay attention to tenant resilience—especially as federal aid is phased out.”

For investors, this makes tenant stability a critical factor. SIG’s research highlights the importance of partnering with operators who are self-sufficient and able to provide stable cash flows. The right tenants will ensure a robust return on investment in a post-pandemic world.

3. Dual-Income Households & the Rising Demand for Reliable Childcare

With both parents working in most households, childcare has become a necessity. This societal shift has transformed early education facilities into essential infrastructure, especially in suburban areas where childcare options are scarce.

“Childcare is no longer a luxury—it’s essential for dual-income households,” Bridges emphasizes. “Investors who cater to this need are not only filling a market gap but also providing a vital community service.”

Investors who develop or repurpose properties into early education centers are addressing a growing societal need while securing solid investment returns. Facilities offering full-day programs that align with parents’ work schedules are in high demand, making them attractive both socially and economically.

4. Economic Resilience & Stability

One of the most appealing aspects of investing in early education is its economic resilience. Unlike other commercial real estate sectors that experience fluctuations, early education remains a steady and essential service. Parents consistently prioritize their children’s education, even in tough economic times.

“Early education is a stable product type with growing operators nationwide,” says Ryan Sompayrac, SIG’s Investment Sales Advisor. “We’re seeing expansion and development in the number of operators and facilities in the education space, making this sector a solid choice for growth-oriented investors.”

How SIG Helps Investors Navigate the Early Education Market

At SIG, we understand the complexities of investing in early education. Our team offers expert guidance in identifying high-quality tenants who can operate independently of short-term financial aid. We closely monitor market trends and policy changes to help investors make informed decisions.

Bridges further highlights, “SIG’s national platform allows us to connect our clients with out-of-state buyers willing to pay a premium, helping them maximize their investment returns.”

By partnering with SIG, investors can confidently navigate the evolving landscape of early education facilities and capitalize on the rising demand in this sector. Whether you’re a seasoned investor or new to this market, our team is here to help position your investments for long-term success.

Contact us today to learn more about our services and how we can help you achieve your financial goals.

It takes more than the desire to grow your financial portfolio to start investing in commercial real estate. The savvy investor conducts a lot of research into the most profitable types of commercial properties before making any decisions. It’s essential to know with certainty that you will be able to give your investment total commitment. 

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There are many types of investors in this world. Some are very hands-on and know exactly what is happening with each investment. Others are less hands-on but still like to know a bit about how their investments are doing. Then, there are the passive investors. There is a place for each type of investor because every investment — from stocks to commercial real estate properties — needs investment funds to thrive. Every investor, no matter what type, has goals for their investment portfolio. For some, they just want to see growth. Others want to take advantage of as many opportunities and tax benefits as possible.

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Commercial real estate investment can be complex, especially when you get into some of the more granular details and processes. For some investors, growing a portfolio is a key to success. In order to do this, there are many different opportunities to buy, sell and trade commercial real estate properties. When a real estate investor knows they want to sell one property and buy another for investment or business purposes, they can conduct what is referred to as a 1031 exchange. Read more →

Triple net lease real estate is popular for investors who want to add a low-risk, low-touch property to their portfolio that generates consistent monthly revenue for many years. 

Triple net leases are typically used for larger and more complex structures, i.e., a strip center or a chain store such as 7-Eleven or McDonald’s. These properties with leases to large single tenants such as national restaurant chains are extremely popular with investors because they provide turn-key investments. The properties tend to have more complicated leases as the tenant is responsible for rent and utilities, along with all operating costs, which include three main categories (net-net-net) types of financial responsibilities typically included and outlined in the contract: Read more →

What is the difference between a triple net lease and a modified gross lease?

What is a Modified Gross Lease?

A modified gross lease can be best understood through comparison, as it represents a middle ground between a full-service gross lease and a triple net (NNN) lease.

Before signing an industrial, retail, or commercial lease agreement, it’s crucial to learn about complex lease terminology to understand and budget for the price you will be paying per square foot.

Leases are often gross, modified gross, or triple net, representing three methods in how costs are divided between tenant and property owner. The kind of lease is often determined by the type of building or the property’s location. It’s crucial to know the difference between these leases before signing a contract.  Read more →

Wawa, a popular convenience store along the East Coast, can make a great triple net property type to add to a real estate investor’s portfolio. Convenience stores, in general, are always in demand and are found in every community across the United States. Customers will stop in on their way home from work, after filling up their car with gas, or on a road trip to grab some snacks before hitting the road again. This constant stream of customers ensures that the triple net property type can stay in business and are a worthy sale to pursue. For investors looking to add different types of retail or diversify from other types of commercial properties for sale, a triple net real estate property like Wawa offers a great way to have a credit-worthy single tenant in a fairly hands-off property type while ensuring a consistent income stream for you. Here are some tips and tricks for buying a Wawa NNN property. Read more →

Triple net lease investment properties are often a great, brand new addition to an investor’s real estate portfolio. NNN properties have a few key benefits for both the landlord and the tenant that make them a popular option for commercial real estate properties. These benefits, for property owners, include less time invested as property maintenance is passed to the tenant, and fewer expenses as property taxes and insurance premiums are handled by the tenant as well. This provides a consistent income stream without a ton of added stress. Now, when investors look for NNN properties, that can mean a variety of things. Some medical offices, strip malls, dollar stores and restaurants fall under this category. Within the restaurant sector, both dine-in restaurants and fast food restaurants are often triple net leased. Read more →

A new case study was released today featuring SIG’s EVP of Operations, Ryan Passe, who was invited to speak at the Quickbase Annual Empower Conference earlier this year. SIG’s recent launch of the company’s internal new broker tools including a proprietary compliance and OM tracker app are the focus of the study.

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For Immediate Release

Charlotte, NC (August 9, 2021) – Sands Investment Group (SIG) announced closing on two DHL Express properties located in Greenville, South Carolina and Raleigh, North Carolina. The transactions both brought in multiple offers within one week of listing and achieved cap rates below 6.00%. Read more →

“With every challenge comes a new opportunity to adapt to something and be a pioneer in a space that’s less saturated. For NNN investors who are willing to take that and be creative, there is huge potential for success in the coming months and years.” Read more →

When considering expanding a portfolio, an investor may want to search for properties that are familiar to them. For some investors, that means multi-tenant residential properties; for others, that is retail or medical listings. However, one way to increase diversification is to go outside that comfort zone and find something completely new.

Industrial real estate is a growing industry for many real estate investors. Industrial spaces can have many uses, but they all have a few things in common: their tenants need the space to run their business and they will stay in one place for a long time. Let’s take a look at industrial spaces for sale and how these industrial properties can grow your portfolio. Read more →

GlobeSt.com and GlobeSt. Real Estate Forum are pleased to reveal the 2021 selection for Influencers in Net Lease. Originally published on GlobeSt.com.

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As a commercial real estate investor, you may be seeking out the next opportunity right now, or just keeping your options open for future investments. New investment opportunities offer a great chance for you to diversify and grow your portfolio, or simply a chance to trade out a lower performing property for something that will bring you more value in the long run. Whether you currently have a vast array of property types or you’ve focused on one primary type like office buildings, you may be wondering about other ways to increase your investments — and your income. One type of commercial property that can help you grow your portfolio is commercial warehouses for sale.

Commercial warehouses come in all sizes, and they can be used for small, local businesses selling items online or for large, multi-state or multi-national companies with huge ecommerce and sales success. They are found across the country in order to serve their customers, who range from businesses to consumers to even a single company storing items until they are needed. No matter the size of the warehouse, there are a few key benefits investors have found when investing in this type of commercial real estate property. Let’s dive a little deeper into investing into the warehouse property type.

Why Invest in Commercial Warehouses

Investing in commercial warehouse properties for sale often makes sense for people. These leases tend to be much longer term, so you won’t have to constantly seek out a new tenant. With options for a longer lease, commercial warehouses can be a great property for triple net leases, where you can pass off many of the maintenance and tax costs to the tenant. You’ll see a higher return on this property type in most cases, as well. While commercial warehouses may have a higher entry point, most investors make their money back relatively quickly with this high value opportunity zone real estate.

Right now, we are still in the post-pandemic market. During the past 15+ months, ecommerce boomed, which means that there has been a great demand for commercial warehouses for sale across the country. People got used to online shopping and have shifted much of their shopping habits away from brick and mortar stores. This trend of online shopping and businesses needing warehouse space is not going away any time soon. That makes this a great time to invest in commercial warehouses to grow your commercial real estate portfolio.

3 Pros of Commercial Warehouses For Sale

Because commercial warehouses are in high demand, both from businesses and from their customers who are continuing to shop online necessitating more warehouse space for processing orders, these three advantages can be found with this type of commercial real estate:

• Higher return on investment
• Long-term leases
• Lower maintenance needs and costs

3  Cons of Commercial Warehouses

Now, as with anything, there are cons to investment opportunities. So you have the best information going into any investment, you should know these three challenges associated with investing in a commercial warehouse:

• Higher entry costs
• Longer timeframe for finding new tenants
• Technological advancement may outpace the space

Top Tips to Finding the Best Commercial Warehouse Opportunities

When you’re looking for the right commercial warehouse to invest in, there are a few key things to keep in mind. Location is very important to these types of businesses, but often in a different way than other properties you may currently own. Here are four elements of the location to understand when seeking out a commercial warehouse space to invest in.

Location: Distribution centers and warehouses are often located near large population centers. This means there will be better access to more trucks for cross-country delivery. But a large population area doesn’t necessarily mean a big city, which would have more traffic and increased costs. You can find  warehouses properties for sale in every state, and in most cities too. In most cases no matter where the warehouse is located, investors are able to plan for reliable monthly income with few landlord responsibilities, especially when tenants and landlords agree to a NNN lease.

Space: With a commercial warehouse, there needs to be plenty of space for delivery of product. The business relies on receiving products, as well as processing orders and distributing products. This means they will need to have space for trucks to come and go and unload or load materials. Commercial warehouses are often best situated near transportation, like highways or interstates, as well as airports or ports (if located near oceans and large rivers used for transportation). Because the costs of bringing in materials and shipping them out is usually more than half of the expenses these businesses see, location really matters for warehouses.

Storage: Aside from needing space for loading and unloading, commercial warehouses can be used for other things than ecommerce. The changing supply chains now mean more businesses have a need for extra storage or manufacturing space. Some businesses or product types need climate-controlled commercial warehouse space, and across the country the industry has seen a demand for cold storage during vaccine distribution. Storage for products, manufacturing, or other needs as supply chains, businesses, and offices change is continuing to grow.

Height: A unique element to commercial warehouses is the need to understand the importance of height (floor to ceiling space inside the building). The property’s square footage only tells part of its storage capacity, in floor space. But with height, this gives investors and tenants a better idea of the unobstructed space within the building, representing the stacking potential of warehouse contents like crates and boxes.

Work with a Pro to Find the Right Commercial Real Estate for Sale

When you partner with a commercial real estate broker who has your goals in mind, you are better equipped to find the right listings and properties to grow your portfolio. At Sands Investment Group, our brokers across the country work with you to identify your goals, define success on your terms, and find the properties that fit your needs including industrial properties, office spaces and a variety of commercial properties. If you’re ready to discuss adding a commercial warehouse to your portfolio in the post-pandemic market, contact the broker team today by calling 844.4.SIG.NNN or sending an email.

When conducting a 1031 exchange, investors can utilize a 1031 exchange intermediary for an easier process. The term 1031 exchange comes from the Internal Revenue Code (IRC), section 1031, which states, “No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment if such real property is exchanged solely for real property of like kind which is to be held either for productive use in a trade or business or for investment.”

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Honoring CRE Female Humanitarians

GlobeSt.com and GlobeSt. Real Estate Forum are pleased to reveal our top picks for 2021 Woman of Influence professionals in the category of humanitarian. Originally published on GlobeSt.com.

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As the NYC subway returns to 24-hour service, indoor dining expands to 75% capacity, and indoor social gatherings expands to a 250 person limit, it’s a welcomed sight to see New York City re-opening! And, we are very much looking forward to attending in person this June 16-17 for NET LEASE Spring 2021.

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As an investor searches for their next property opportunity, there are many different types of real estate that may jump out as a possibility. From fast food restaurants to strip malls and everything in between, real estate can be a lucrative investment opportunity. In 2021, especially, it can seem like there are many good options for investments. One such investment that can add significant value to a growing real estate portfolio is a CVS for sale.

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If you’ve been researching investment opportunities in commercial real estate, you have probably come across many terms you are unfamiliar with. It can seem overwhelming to figure out if investing in real estate is truly what you want, especially when you don’t understand what is being discussed.

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