What Is A Triple-Net Lease Property?
Triple net lease properties (NNN properties) are properties where the tenant pays all ongoing operating expenses. Since additional costs cannot be deducted, the landlord receives a ‘net’ rent. In addition to property taxes and insurance premiums, tenants are responsible for utility bills, maintenance, and repairs. Many triple net leases are long-term (10-25 years) with cost-of-living increases built. Most people consider triple net properties to be the most secure and resellable real estate investments, especially if the tenants are solid and credit-worthy. Corporate guarantees are even available for leases. The tenant must pay the lease regardless of whether the building is occupied.
Many successful regional and national companies lease the properties they occupy for their trade or business. As a result, corporate funds can be used for further business expansion rather than being tied up in brick-and-mortar. Since their company logo and name typically appear on the building they are leasing, and the public perceives them as owners, they have a vested interest in making sure their taxes are paid, their building is in good repair, and the grounds and facilities are adequately maintained. Companies can control their physical environment without committing capital by leasing the building on a triple-net lease basis.
Our net-lease tenants include Family Dollar, Walgreens, CVS, the U.S. Government, Taco Bell, Dollar General, Checker Auto Parts, Goodyear Tire, Fresenius Medical Care, Barnes and Noble, Microsoft, PetsMart, Jiffy Lube, Federal Express, Applebees, Tractor Supply Co., and Marie Calendars, among others.
Eliminate All Landlord Hassles & Diversify Your Investment Today
Most real estate investors own their properties in addition to their day jobs or retirement plans. There is little time for real estate investments for those who don’t have (or don’t want to spend) much time on them. Many baby boomers seek a more passive income approach by selling their agricultural properties to prepare for retirement. In addition to providing a secure monthly income, triple-net lease properties can provide appreciation potential. “Burned-out” landlords often choose net-lease properties for their property investments. It is typically only for investors with a minimum investment of $1 million that triple net lease properties are available.
As a result, DSTs have grown enormously in popularity because they provide investors with a way to invest in triple-net lease properties for as little as $50,000. Additionally, investors can diversify into multiple properties if they invest in a triple-net lease property.
Explore 1031 Exchange Opportunities
Connect with our 1031 exchange experts and find the right property to complete your exchange process.