Investing in real estate is about your goals and objectives and risk tolerance. Because we have a long-term perspective and value our client relationships, we want to help you assess the best way to meet those objectives. Single-Tenant, Triple-net leases have some wonderful advantages if you’re looking for a solid investment as Joseph Austin, CCIM shares in this article.
Top Reasons to Invest in Single Tenant Triple Net Lease (NNN) Property
From a very young age I’ve been fascinated with real estate investing and I’ve been fortunate enough to have had the opportunity to purchase, manage
There are numerous reasons to invest in a triple net lease: passive income, the multiple usual benefits that exist in real estate investing, stability, and financing. For these reasons, Austin says:
Single Tenant NNN Lease property (sometimes called Triple Net or Net Net Net), however is the closest “one-size-fits-all” real estate investment type that there is. I wish every household in America owned a single tenant triple net leased property.
Great Source of Passive Income
People generally choose real estate investing because they’re looking for passive income, often as they are looking toward their future retirement. This is wise, yet many real estate investments come with the need for serious involvement with maintenance, management, and leasing issues. Sometimes these issues are costly—both financially and in terms of time. As Austin explains, this is why triple-net leases are a particularly good form of passive income:
Single tenant triple net lease properties are the best investment avenue for passive income in real estate. For absolute triple net leases, the TENANT is responsible for all repairs and maintenance. The TENANT is responsible for the structural components of the building. The TENANT is responsible for the roof, parking lot and heating and air conditioning systems. The TENANT is responsible for all operating expenses of the property including property taxes and insurance.
Multiple Advantages Of course many people who choose to invest in real estate are looking for other benefits too, such as tax advantages and the potential for appreciation. Triple-net leases also offer the major benefit of stability:
These properties tend to have long-term leases. They are usually very visible properties and prominently located within the primary shopping areas with a lot of foot or vehicle traffic and often in front of large, “anchor type” tenants such as Walmart, Home Depot, or Costco. The leases are commonly signed by regional or national tenants with a large brand following…
Because of that stability, financing is generally easier to obtain for these properties, and that brings a lot of security. These are also the perfect choice for 1031 exchange multi-family to triple net and 1031 exchange commercial to triple net. All of these benefits make for a great investment.
The professionals at Pacwest Commercial Real Estate are experts in triple-net leases, and they’re only a phone call away. You can reach them at 541-912-6583 to discuss triple-net lease properties.
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