Track Records

NNN lease benefits

Investors can benefit from NNN lease properties in a variety of ways. In NNN leases, tenants take on the responsibility of major expenses, such as HVAC and roof repairs, keeping the operation cost lower for the landlord. Typically, NNN leases have lower rent per square foot rates which increases the tenant pool when a landlord is ready to lease the property. For specific tenants, landlords will frequently modify leases allowing for greater flexibility and higher tenant retention. NNN Properties is a passive investment, and NNN Properties are ideal investments. NNN properties provide many of the same benefits as investing in other real estate classes. For farming families who sell highly appreciated real estate and who want long-term, steady income with little or no management responsibilities, NNN lease properties can make compelling sense when utilizing a 1031 Exchange.

Single-tenant net lease

NNN leased investments are generally leased to one single tenant and are thus referred to as STNLs or Single Tenant Net Leases. A NNN lease investment can however have two or more tenants, and it would not be considered an STNL investment. An example of this would be a Starbucks & MetroPCS which share a building under two separate NNN leases, or a retail strip center where all tenants are wrapped into one NNN lease. Both examples would be considered NNN leased investments; however, they would not be STNLs. The risk of default is spread out over more than one tenant in such NNN deals (e.g., if either Starbucks or MetroPCS goes bankrupt, the other tenant continues to pay the rent due under their NNN lease). Such deals can appeal to investors seeking to spread risk, though the simplicity of collecting one rent check from one tenant is forfeited.