NNN Sale Leaseback

Why Consider a Triple Net Sale Leaseback

Property investors looking to increase their capital or portfolio will find that triple net sale leasebacks provide an ideal opportunity for them to do so. However, those looking to sell or become a tenant for their properties will also benefit from NNN sale leasebacks.

These are the benefits a seller can get:

  • Ability to convert the commercial property’s equity into cash
  • Configure your own leaseback rental rates along with other terms
  • Free up investment real estate capital to finance your business deals
  • Long-term lease agreement with locked-in rates
  • Ability to deduct rent payments as part of business costs

These are the following benefits prospective landlords can get from sale leasebacks:

  • Be the owner of a property while having minimal responsibilities
  • Deduct property depreciation costs along with interest payments on income tax return
  • Protection from changing CRE market fluctuations
  • Potential to benefit from investment tax credits if available
  • Opportunity to have a constant return on investment with low risk

Triple Net Sale Leaseback King Ted Dowding

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There are many commercial property investors who don’t know the financing options available to them. The triple net sale leaseback (also called NNN sale leaseback) is one option that will allow them to improve their flow of cash without affecting their daily business operations.

If you’re thinking of going into this type of agreement but aren’t sure what it entails, then Net Lease World is here to help. We’ve prepared a short guide that will discuss everything you need to know about sale leasebacks related to triple net lease properties.

In case of inquiries, feel free to contact our team at Net Lease World for more details.

What Is a Triple Net Sale Leaseback?

A triple net sale leaseback is a transaction where the property owner agrees to sell their property to a buyer and then leases the same location from them for a specific period. The time for this type of property lease usually lasts up to 10 years and will involve a predetermined rental rate for the lease prior to signing the agreement.

The triple net sale leaseback deal can be a great option for property investors who are new in the business. This is because these agreements can provide them with the opportunity to gain passive, reliable income.

In an NNN sale leaseback, an entity — like a corporation — agrees to sell its property to an interested buyer while remaining in control of the site as well as its operations. Upon agreeing to the deal, the entity then sells the location to the investor as a leaseback deal through an absolute NNN lease, allowing them to become its tenant.

The great thing about most of these triple net sale leasebacks is that the investor gets a hold of a property that’s already thriving. These opportunities can provide them with long-term revenue with minimal responsibilities on their part.

Furthermore, the rent for these properties is often dependent on its historic profitability. Such profitability is measured through predictable forecasts and certain figures. All increases in future rent are also locked in. This means that there will be no surprises in terms of cash flow in the future.

Many people invest in NNN sale leasebacks because of the financial clarity they offer. They are a low-risk investment and can provide buyers with a steady cap rate that they can depend on for months to come.

Why Companies Go Into Triple Net Sale Leasebacks

We’ve already discussed some of the main benefits entities can get if they go into a triple net sale leaseback deal, but what exactly are the primary reasons why these business owners would choose to become a tenant of a property they own?

One of the most common reasons is because these entities want to get out of the real estate business altogether. A corporation, for instance, may be interested in freeing up capital, so they can have the money to expand or pay off debts.

A major benefit of a triple net sale leaseback for corporations is that it can effectively be used to minimize risk, get rid of debt, and provide them with the funding they need. They can then use the money to develop their locations, expand to new areas, or invest in the latest technologies.

Since they can obtain the money they need while eliminating illiquidity and mortgage debt, the tenant gets to stay in a property they’ve held for many years with the added guarantee of a long-term lease.

The following are also some reasons why entities would choose to sign a NNN sale leaseback:

  • Releasing locked equity from illiquidity
  • Gaining funds for expansions, buying new technologies, or other opportunities
  • Improving their creditworthiness
  • Becoming an attractive option for interested buyers and investors
  • Minimizing overhead while creating a smaller footprint for more reliable returns

Looking for Triple Net Sale Leaseback Properties?

As you can see, there are many benefits that buyers can get when they invest their money into a triple net sale leaseback deal. However, finding these properties can be difficult — especially if you don’t know where to start.

At Net Lease World, we provide listings of commercial real estate properties that will make for ideal net sale leaseback agreements. You can simply browse our selections and gain information on properties you’re interested in.

Are you ready to get started? Find the ideal NNN sale leaseback properties available in your chosen location today through Net Lease World.