Also known as NNN or Triple Net properties, triple lease properties are low-risk investments that provide steady, predictable cash flow. They’re a great option for any investor who wants to get into real estate but doesn’t want the headache of maintenance. Even a Triple Net Lease for sale in the same area as a multifamily property will typically provide a bigger cash flow.
What is a Triple Net Lease?
Simply put, a NNN is a lease agreement where the lessee (or tenant) is responsible for paying all property expenses, including taxes, maintenance, and insurance. The lessee pays these expenses in addition to paying rent and utilities. Here are a few key points to consider:
- With a single net lease on commercial property, the lessee pays rent, utilities, and property taxes while the property owner is responsible for other costs such as maintenance property insurance
- With a double net lease, the lessee pays a lower base rent along with utilities, taxes, and property insurance. The owner pays for maintenance and upkeep.
- With a triple net lease, the lessee pays an even further reduced rent, but also pays for utilities, property taxes, property insurance, and maintenance.
- Typically, a NNN consists of a portfolio of properties with at least three commercial properties such as a suite of offices, an industrial park, or a shopping mall. The risk is low because the properties are already fully leased with a reliable cash flow.
- Triple net lease properties are popular investments because they provide steady income with a low risk
Should I Find A Triple Net Lease for Sale?
Triple net lease properties are an excellent investment for new or experienced investors. Read on for our top five reasons you should consider a NNN.
1. Stability. Triple Net Lease properties aren’t the flashiest investment in your portfolio, but they may be the steadiest, providing a reliable cash flow. Both investors and tenants benefit from long-term leases, sometimes lasting as long as 20 years.
2. No Management Responsibilities. With an NNN, all management headaches fall on the tenant. Even upgrades like new landscaping or property upgrades are the tenant’s financial responsibility.
3. Passive Income. Few investments ask less of you than a triple net lease. With the passive income of a NNN, you are free to travel, run another business or pursue other interests because you’re not tied to a property that requires your constant attention.
4. High Liquidity. Because of the many benefits they offer, triple net lease properties are popular investments. If you do need to liquidate, the potential for a large number of interested buyers is good.
Triple net lease properties are recommended for both new and seasoned investors. They are a low-risk, low-maintenance investment that provide a steady cash flow. If you’re interested in investing in a triple net lease but aren’t sure how to get started, a company like Net Lease World is a valuable resource. With extensive marketplace networks. they can help you find a net lease investment anywhere in the U.S.A.