Triple Net Lease investing (NNN) involves buying free standing buildings that are leased to credit-worthy tenants. Tenants can be everything from a Walgreen Drug Store to a dollar store such as Family Dollar and Dollar General. … NNN properties are typically leased to tenants for a 10 to 25 year term.
Herein, are NNN Properties good investments?
STNL properties can be great investments, but they aren’t without risk. … The NNN refers to the nature of the triple net lease, which requires the tenant to pay (in addition to the rent) property taxes, insurance, and maintenance on the property.
Thereof, what are the best NNN investments?
NNN
- Gas Stations.
- Convenience Stores.
- Dollar/Discount Stores.
- Grocery Stores.
- Medical Facilities.
What is the average NNN rate?
Now we have to add on the NNN cost which may range from $1 to $20 a square foot based on the use and costs. It is typical to see a $3 a square foot NNN cost in my area, which would add $15,000 a year or $1,250 a month to the costs.
What should I look for in a NNN lease?
The Best NNN Tenants
Make sure they have a strong history of paying rent on time and have always made tax and insurance payments according to their lease terms as well. You’ll also want to ensure that they’re doing well in the location and have longevity to continue succeeding when you take over ownership.
How do you finance NNN properties?
When financing a NNN property, you must have a down payment, typically between 30-40%. To obtain ideal financing for your goals, it’s imperative to buy a property subject to an investment-grade tenant or quality franchisee with a long-term lease guarantee.
Is Triple Net negotiable?
A triple–net lease (also called a triple-N or an NNN lease) is a type of commercial lease that specifies who is responsible for which rental expenses. … Less obvious—but arguably more important—however, is the fact that commercial leases can be highly-negotiable contracts.
What does NNN mean in commercial lease?
triple net lease
What does NNN include?
A triple net lease (triple-Net or NNN) is a lease agreement on a property whereby the tenant or lessee promises to pay all the expenses of the property including real estate taxes, building insurance, and maintenance.