A Single Tenant NNN Property is a lease by a single, investment-grade tenant, Invest In a Single Tenant, for a long term (15-25 years), with low cap rates. There are many uses ranging from office to industrial to retail. They can include office buildings, warehouses, department stores, supermarkets and other retail use(Triple Net real estate). About one-third of all properties today, qualify as Single Tenant.
As this is a NNN property with only one tenant, the termination of the lease by the tenant will lead to a possible 100% vacancy, which is a huge risk for an Invest in a Single Tenant NNN lease property(Triple Net real estate). Thus an investor should attempt due diligence keeping the following facets in mind:
- The NNN property should be well maintained with low maintenance expense, and superbly located;
- The tenant should have excellent credit since the investor’s financier will look to the credit of the tenant and/or the tenant’s lease guarantor for underwriting;
- Opt for the longest lease term possible with stringent clauses preventing early termination by the tenant and condemnation clauses that specify that insurance proceeds reimburse the owner directly.
In return for taking on Single Tenant tenancy risk, an NNN property investor will see the following benefits:
- Fixed income: The investor gets the assurance of a secure, stable, monthly return for a long period of time;
- Passive income: NNN property investing implies minimal management of the property by the investor;
- Absence: of short term, re-leasing risk
Find the best to Invest In a Single Tenant Tenant properties for investment. Call your specialists at the Triple Net Investment Group, today.
