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Triple Net Leases

3 Tips for Purchasing Triple Net Properties

If you are searching for new investment, you might wonder where you can find Triple net property for sale. The entire process can seem overwhelming, especially if you have never invested in commercial properties before.

However, there are many resources available today that educate potential investors. This allows them to better understand the process of triple net property investment and successfully navigate the market.

Searching for Triple Net Property For Sale

#1 Location, Location, Location

During your initial search for a triple net property, it is important to always consider the location. There are two types of location categories you will want to pay attention to.

First is the physical location. Properties that are located in upscale or commercially developed parts of town are higher traffic areas, attracting more customers.

For instance, is there property you are considering located in a shopping center? Or perhaps it is located on a corner lot near a larger grocery store. Either of these qualities is a great potential investment.

Secondly, there is geographic location. This essentially means checking the region that surrounds your investment property. Is it experiencing a high-growth rate? Is the population growing substantially year-to-year?

There are benefits of purchasing a property in a highly populated area. However, it is also good to note those locations that might see eventual growth. For instance, a small town that is along an interstate could offer more traffic than you might think. Especially if yours is the only grocery store or pharmacy/drug store for miles around.

#2 Choose a Property that Houses an Essential Business

Most triple net investment properties will house businesses like grocery stores, pharmacies, discount stores, banks, and clinics. These are great investments because they are essential businesses. This means that they will provide a relatively stable income for you for the duration of the company’s lease.

Customers rely on grocery stores and discount stores to buy food and household goods. Banks and clinics are also places that customers go on a semi-regular basis. When you purchase a triple net property that houses any one of the above businesses, you are making a sound investment.

#3 Consider Hiring a Triple Net Lease Advisor

If you find the triple net scene a tough one to navigate, consider hiring the assistance of a professional triple net lease advisor. A triple net advisor can help you understand the market and select an investment property that suits your budget.

These advisors will give you the benefit of their years of experience. This includes offering insight into the longevity of certain types of properties and their specific location. The combination of location and property type can make all the difference in the success of your investment.

Choose NetLease World for Your Triple Net Property Search

If you are searching for a triple net property, check out the listings on NetLease World! You can search listings with ease by narrowing your search through convenient filter options. Give our office a call for more information about our property listings!

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Triple Net Leases

What to watch for in Single Tenant Properties

Are you searching for a new and exciting investment opportunity that offers long-term income? If so, consider searching for NNN Properties for Sale. NNN, or Triple Net, properties are typically a hands-off, stable investment as long as you are methodical about the location and type of business you select.

If you have never invested in commercial property before, the process of selecting and purchasing one can seem overwhelming. However, there are countless resources available to new investors trying to navigate the market.

What is a Triple Net Property?

A triple net (NNN) property is the combination of many different qualifications. Foremost, it is a commercial property.

Depending on the building size and layout, the building can have one or more tenants. There are particular benefits to having a single tenant. For instance, a single-tenant is more convenient as far as management comes in than multiple tenants.

Perhaps the most important aspect of a triple net property is that the tenant is responsible for all expenses related to the building’s property and upkeep. This includes property taxes, maintenance, and other aspects of property care.

Some leases will stipulate that the building owner is responsible for structural maintenance, including the roof, electricity, plumbing, and so forth. However, this is rarely the case, so it is more an exception than the rule.

3 Things to Look for in a Single Tenant NNN Property

#1: Lease Terms

When considering which triple net property you would like to purchase, it is important to carefully consider the lease terms, paying special attention to the lease duration. It is more beneficial to your investment if you choose a building with a lease with upwards of twenty years left on it.

This is because you will likely get more from your investment when you have twenty years to break even rather than just ten years. Look closely at what the lease says about your responsibilities as the property owner.

Most people find triple net properties to be the better investment because all property management responsibilities are placed on the tenant. However, some situations require the property owner to take on the financial burden of structural maintenance.

With leasing terms, it is helpful to consider how much you want to be involved in managing the property.

#2 Risk

There are several risks associated with the purchase of a single tenant triple net property. For instance, if the company leasing your building goes bankrupt and must forcibly cancel their lease, then you will be suddenly left to handle all the property management financial commitments.

Or, if the tenant decides they do not want to renew their lease, then the same situation will occur. There are many factors you can look at when considering the risk of property investment. Keep reading to find out more about how these elements can affect whether the property makes a good investment!

#3 Location

One of the best considerations you can make regarding property is its location. For the purpose of discussing property investment value, there are two types of locations: geographic and physical.

Let’s talk about geographic location value first. This type of location refers to the location of the building and the surrounding region.

It is ideal to select a building that is located in a fast-growing area. There are other buildings that will be located in more sparsely populated areas. However, don’t be quick to disregard the value of these properties. Instead, briefly consider whether these regions could experience potential growth in the near future.

For instance, a triple net property might be located in a small town, but should that town sit alongside a major highway or interstate, it could add up to a great investment opportunity.

Physical location value refers to the specific location of the building within a city. For example, is it located on a corner lot with easy accessibility? Or does it sit next to a large grocery store in a large shopping center?

These are all valuable things to consider when searching for the right property!

Consider Hiring a Triple Net Lease Advisor

If you are having difficulty navigating the triple net property market, consider hiring a triple net lease advisor. This type of professional advisor can help you find the right property for your investment.

As with hiring any professional, a NNN lease advisor gives you the benefit of their experience. They will have extensive knowledge of the industry and market. As a result, you will be able to make an educated decision, knowing you’ve got the expertise of a professional advisor on your side.

Choose NetLease World When You are Searching for NNN Properties for Sale

If you find yourself searching for NNN single-tenant properties, visit the NetLease World website for a complete listing in your area!

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Triple Net Leases

Triple Net Leases: Invest and Grow

If you’ve seen a triple net lease for sale, you may be wondering if a triple net lease is a good investment opportunity. We’re here to tell you that it’s not just a good opportunity – it’s a great one. Read on to find out about the benefits of triple net leases, and about how Net Lease World can help connect you with prime prospects.

What is a Triple Net Lease?

If you are not already familiar with them, a triple net lease is a lease agreement in which the tenant is responsible for property taxes, insurance, and maintenance. This arrangement comes with a variety of benefits for landlords and tenants. Here are some of the reasons why you should consider investing with a triple net lease.

Hands-Off Investment

One of the most time-consuming aspects of property investment is upkeep. For example, with apartment or single-family home leases, landlords are usually responsible for taking care of anything that goes wrong. As a landlord in a triple net lease, your day-to-day responsibility is very limited. Since the tenant takes care of maintenance, building improvements and repairs don’t even need to be on your radar.

Stable Source of Income

Triple net leases usually bring in steady, reliable income. Most triple net leases are drawn up for commercial properties which are leased and managed by one tenant, like shopping malls (1). Because of the ongoing business taking place at the property, the income is usually fairly secure. The leases also usually include built-in rent increases (1).

Benefits for Tenants

Triple net leases are also an attractive option for tenants. Since the tenant is also responsible for more of the property costs, the rent is usually lower than it would be otherwise (1). Also, a triple net lease allows the tenant to have a high level of control over building operations. They can take it upon themselves to solve minor problems and make improvements. This removes the frustration of waiting for a landlord to address things.

Another benefit for tenants is that the landlord is usually still responsible for the condition of the building’s roof and basic structure. If there are major problems, the tenant can ask the landlord to deal with them.

Find a Triple Net Lease for Sale

Triple net leases make great investment opportunities. The risk for the investor is very low, and so is the daily responsibility. At the same time, tenants are happy with lower base rent and greater freedom. If you’re ready to take this next step in investing, Net Lease World is ready to help you find the perfect property.

With our search tool, you can look for triple net lease properties in your area. You can search by price and capitalization rate, as well as your preferred lease term. Maybe you even have a specific company in mind that you’d like to work with. If you do, you can also search for properties by tenant name. Breaking into triple net lease investing is a great move for your portfolio, and Net Lease World makes it simple to find the right property. Check out our listings today!

References

1. ‘Triple Net Lease (NNN).’ Source: https://www.investopedia.com/terms/t/triple-net-lease-nnn.asp