TRIPLE NET LEASE: Properties with Multiple Advantages
Highlights of Triple Net Lease Investments
• Typically 10+ Year Lease Terms
• Absolute NNN
• Zero Landlord Responsibility
• Financing Available
• Annual Rent Increases
Denenberg Realty Advisors assists clients in the acquisition and disposition of Net Leased and Triple Net Leased Properties nationwide.
The terms TRIPLE NET LEASE, TRIPLE-NET, NNN, NET LEASE, NET-NET-NET are interchangeable. The definition of a Triple Net Lease (NNN) requires the tenant to pay all insurance, maintenance, and taxes. The tenant is responsible for all normal expenses of ownership, leaving the owner free of day-to-day management responsibility.
Advantages of Triple Net Lease Properties
Here are a few benefits of an investment grade (defined as having a BBB or Better Credit Rating by at least one of the rating agencies) NNN Property exchange investment property:
NNN Property exchange properties can relieve owners from day-to-day management therefore requiring limited or zero Landlord responsibility on the property
Steady income-stream potential paid by a corporate tenant
A long-term lease to a corporate tenant with credit rating usually makes it easier to get a mortgage at favorable rates
Properties built for retailers who have researched the market to find high density, middle income areas with attractive traffic patterns may have appreciated residual values.
Many regional and national companies choose to lease their business property. Leasing gives the occupying companies the ability to control their physical environment. By leasing property, companies also free up their corporate funds for business expansion and improvements. Thus Triple Net Lease gives companies control over a property they occupy without the capital commitment of ownership.
Denenberg Realty Advisors sells Triple Net Leased properties throughout the United States. If you have such a property for sale and would like to present it for our client's consideration, or if you are looking to acquire a triple net property, please contact us.
The term of most commercial property Triple Net Leases are between 10-25 years, and may include cost-of-living rent increases (CPI). Rental payment continues for the full term of a Triple Net Lease. In a Triple Net Lease environment, tenant credit rating is very important, but is not always the whole story.