Arkansas NNN Properties for 1031 Exchange
Interested in purchasing a Free Standing Single Tenant Triple Net Property for your 1031 Exchange?
At Triple Net Investment Group, We specialize in the sale of triple net shopping centers and single tenant investment properties nationwide. We focus on providing high quality 1031 exchange replacement properties nationally. We maintain a high level of product expertise coupled with tenacity and a strong concern for client satisfaction. We have been able to provide buyers with sound investment options in commercial real estate and sellers with specialized strategies to maximize their property value and appreciation.
Why Single Tenant Triple Properties are Popular in Arkansas for 1031 exchange?
Single Tenant Triple Net Free Standing Properties in Arkansas are popular for 1031 exchange because of their predictable cash flow and financially strong corporate entity guaranteeing the lease (Arkansas Triple Net Properties). In Triple Net properties, the tenant is responsible to pay for the net of taxes, insurance, operating and building maintenance expenses. In absolute triple net properties, the roof and building structure are also covered by the tenant.
Corporate Tenant Credit Ratings
Find out more about the credit rating of the tenant before purchasing.
How safe are the triple net investment grade free standing single tenant properties?
Market Analysis
What three things should I know before investing?
Call or e-mail us and we will get back to you within 24 hours. We know of properties for sale that aren’t listed or advertised.
Email: info@nnndeals.com Tel: 202-361-3050
We strive hard to provide clients with quality costumer service
We provide our clients with all of the information they need upfront to make an informed decision, even before a Letter of Intent is issued such as: tenant credit information, store sales, lease terms, options, renewal rates, rent escalations, location analysis, site analysis, market analysis, demographic data, cash on cash returns on investment, internal rate of returns after taxes, risks, likes, dislikes and so on. We will then strategies how to proceed on making a best offer(triple net lease). It is our goal to build a solid relationship with our clients and keep them updated on net lease investments, even though they may not have a need for years to come.
We markets our listings locally, nationally and internationally
Triple Net Investment Group difference is a concept that is revolutionary in the commercial real estate brokerage business. In addition to marketing our deals to potential investors, We markets our listings to the entire brokerage community. We put our listings directly in front of thousands of commercial real estate agents in each state, region and local where the property is located.
Single Tenant Triple Net Properties For Sale Across the United States
Please contact us if you are buying or selling a net leased property in Arkansas. We get results.
Email: info@nnndeals.com
Why NNN Investors Prefer Arkansas State: Higher Growth & Competitive Cap Rates Explained
Future Holding for NNN Property Investments in Arkansas
Triple Net Lease (NNN) properties, where tenants cover property taxes, insurance, and maintenance costs, have long been a preferred investment choice for those seeking steady income with minimal management responsibilities. In Arkansas, the future of NNN property investments remains promising, driven by several key factors:
1. Economic and Population Growth
Arkansas has experienced notable population growth, especially in areas like Little Rock and Bentonville. These expanding metropolitan regions fuel demand for commercial real estate, making net lease properties an attractive investment for NNN investors looking for long-term stability and appreciation.
2. Stability and Demand for NNN Properties
NNN lease properties offer consistent, long-term income due to their structured lease agreements, where tenants handle most operational expenses. This level of stability is particularly appealing in uncertain economic conditions, ensuring that NNN brokers and investors continue to see strong demand in Arkansas’s growing markets.
3. Market Trends and Cap Rates
Nationally, cap rates for NNN properties have been trending upward, reaching heights not seen since 2011. This suggests improved return potential for investors. In Arkansas, the growing inventory of NNN property listings—ranging from retail centers to industrial assets—gives investors a broad spectrum of options to secure lucrative deals.
4. Financing Considerations for NNN Investors
Investing in net lease properties typically requires a net worth of at least $1 million or an annual income exceeding $200,000. Down payments commonly range from 30% to 40% of the property’s value. These financial criteria are crucial for NNN investors aiming to enter or expand within Arkansas’s commercial real estate market.
5. Local Market Opportunities
Arkansas offers a strong landscape for net lease property investments, including single-tenant retail and industrial assets. For instance, a single-tenant industrial facility in the Little Rock metro area is currently available, featuring a NNN lease with five years remaining and built-in rent escalations. Investors using a 1031 exchange can leverage such opportunities to defer capital gains taxes and enhance their portfolios.
Triple-net (NNN) investors are increasingly viewing Arkansas as a top destination for net lease investments, thanks to its higher cap rates, growing economy, and business-friendly environment. Here’s why NNN brokers and investors see Arkansas as a lucrative and strategic market:
1. Higher Cap Rates Compared to Other States
NNN investors are drawn to Arkansas for its appealing cap rates, typically ranging from 6% to 7.5%, which often surpass those found in states like California, New York, or Florida, where cap rates frequently fall below 5%. This allows investors to achieve better yields while maintaining long-term leases with reliable tenants.
2. Affordable Property Prices
Arkansas offers commercial real estate at more affordable prices than major metro areas, making it easier for investors to enter the market or diversify their portfolios. Investors can acquire net lease properties occupied by national tenants—such as Walgreens, Dollar Tree, or AutoZone—at lower cost points while enjoying strong cash flow and minimal management responsibilities.
3. Growing Population & Economic Development
Arkansas continues to experience growth, particularly in metro areas such as Little Rock, Fayetteville, Bentonville, and Jonesboro. The state benefits from a rising population and a diversified economy supported by healthcare, logistics, and retail. Business incentives and a favorable tax climate further contribute to economic expansion and increasing demand for NNN properties.
4. Strong Demand for Essential Retail & QSRs
Net lease investors and brokers are targeting quick-service restaurants (QSRs) and essential retail in Arkansas. Properties leased to brands like Chick-fil-A, Walgreens, Dollar General, and Taco Bell are in high demand. These tenants provide long-term leases with corporate guarantees, offering investors income security even during economic downturns.
5. No State Income Tax on Passive LLC Income
Arkansas offers a competitive tax environment for investors. While not as tax-neutral as some states, Arkansas still provides favorable terms for those using 1031 exchanges to defer capital gains taxes. Investors can reinvest proceeds into NNN assets within the state while optimizing their returns in a cost-effective real estate market.
6. Infrastructure & Industrial Growth
The state is seeing robust investment in transportation, logistics, and industrial development, particularly in regions near interstates and major shipping routes. Companies like Walmart (based in Bentonville), Tyson Foods, and JB Hunt continue to expand operations, creating opportunities for NNN investors to acquire logistics-related, service-oriented, or retail properties in thriving commercial zones.
Income Taxes
Arkansas’s Tax Advantages for NNN Investors: A Smart Choice for Net Lease Properties
Arkansas provides several income tax advantages that make it an appealing location for NNN investors seeking to optimize returns while minimizing tax liabilities. With a balanced tax structure and pro-business policies, Arkansas offers compelling reasons for investors and NNN brokers to consider it for their next net lease investment:
1. Passive Income Taxation: Favorable Treatment for Rental Income
While Arkansas does tax passive income, including rental income earned through LLCs, the overall state tax burden remains moderate. This makes Arkansas more investor-friendly than high-tax states like California or New York. NNN investors can still achieve attractive post-tax returns due to Arkansas’s lower overall cost of property acquisition and management.
2. Competitive Corporate Income Tax Rates
Arkansas recently lowered its corporate income tax rate to 5.1% (as of 2024), making it one of the more competitive states in the Southeast. This reduction benefits NNN investors operating through corporations by increasing retained earnings that can be reinvested in property acquisitions or capital improvements.
3. Progressive but Reasonable Personal Income Tax Rates
Arkansas’s personal income tax system is progressive but relatively moderate, especially compared to high-tax coastal states. As of 2024, personal income tax rates are:
0.0% on the first $4,300
2.0% – 4.7% on income between $4,301 and $24,300
4.7% on income above $24,300
These rates are far below California’s top rate of 13.3% or New York’s 10.9%, allowing individual investors to retain more earnings from NNN property income.
4. No Estate or Inheritance Tax
Arkansas does not levy a state-level estate or inheritance tax, which is a major benefit for investors looking to preserve wealth across generations. NNN properties can be passed on to heirs without facing an additional state tax burden, enhancing long-term estate planning strategies.
5. Low Property Tax Rates
Arkansas enjoys relatively low property taxes, with an average effective rate of 0.61%, well below the national average. Compared to states like New Jersey (2.2%) or Texas (1.6%), this lower tax rate reduces long-term holding costs and improves cash flow for NNN investors.
6. No Separate Capital Gains Tax
Arkansas does not impose a separate capital gains tax. Instead, capital gains are taxed as ordinary income at the applicable personal or corporate income tax rate (up to 4.7%). This is significantly lower than the 13.3% capital gains rate in California, making Arkansas an appealing location for those using 1031 exchanges or planning a profitable asset disposition.
Investing in triple net lease (NNN) properties in Arkansas can be a strategic move, particularly in regions experiencing population growth, economic expansion, and infrastructure development. With tenants responsible for property taxes, insurance, and maintenance, NNN investments offer a passive income stream. Based on recent data, here are some of the top cities and counties in Arkansas to consider for NNN property investments:
1.Benton County (Bentonville, Rogers):
Population Growth: Benton County added approximately 7,350 residents between 2023 and 2024, driven by strong domestic migration and natural growth.
Economic Development: Home to Walmart’s global headquarters, the area is a major hub for retail, logistics, and corporate offices.
Investment Potential: Rapid commercial and residential growth makes Benton County ideal for NNN investments, particularly in retail, office, and service-based properties.
2. Washington County (Fayetteville, Springdale):
Population Growth: The county saw a net population increase of 4,980 in the past year, fueled by job creation and university enrollment.
Economic Development: Anchored by the University of Arkansas and a growing healthcare sector, Washington County supports a stable and expanding economy.
Investment Potential: Opportunities exist for NNN properties serving students, professionals, and families—especially in QSRs, pharmacies, and essential retail.
3. Pulaski County (Little Rock):
Population Growth: Pulaski County added approximately 2,890 residents between 2023 and 2024, with stable in-migration.
Economic Development: As Arkansas’s capital, Little Rock is a hub for government, healthcare, and finance, supporting a steady flow of business activity.
Investment Potential: Central location, diverse economy, and infrastructure improvements make Pulaski County suitable for NNN office buildings, retail strips, and medical clinics.
4. Saline County (Bryant, Benton):
Population Growth: Saline County grew by 2,300 people in the past year, with suburban growth stemming from proximity to Little Rock.
Economic Development: Increasing residential development and retail expansion are reshaping this fast-growing suburban area.
Investment Potential: A strong candidate for NNN retail and service-based properties, especially in shopping plazas and healthcare.
5. Craighead County (Jonesboro):
Population Growth: The county added approximately 2,000 residents between 2023 and 2024, with steady migration and development.
Economic Development: Jonesboro’s role as a medical, education, and agribusiness center supports regional economic strength.
Investment Potential: With growing demand for healthcare and student-related services, this area is ideal for NNN investments in pharmacies, clinics, and QSRs.
6. Garland County (Hot Springs):
Population Growth: Garland County grew by around 1,600 people in the last year, bolstered by tourism and retiree migration.
Economic Development: As a historic resort town, Hot Springs thrives on hospitality, healthcare, and tourism.
Investment Potential: Ideal for NNN properties in hospitality, retail, and medical offices, serving both residents and visitors.
Pros:
1️⃣ Higher Cap Rates
Alabama offers higher cap rates (6%-8% or more) compared to lower-yield states like California (4%-5%).
Investors can achieve better cash flow and returns.
2️⃣ No State Tax on Passive LLC Income
If structured correctly, rental income from NNN properties is not taxed at the state level when earned through an LLC.
3️⃣ Low Property Taxes
Alabama has one of the lowest property tax rates in the U.S. (~0.40% effective rate).
Reduces overall holding costs for long-term investors.
4️⃣ Affordable Property Prices
Commercial real estate in Alabama is cheaper than in high-cost states, allowing investors to enter the market at a lower price point.
5️⃣ Growing Economy & Population
Strong economic growth, especially in Huntsville, Birmingham, and Mobile (tech, aerospace, and automotive sectors).
Population growth supports retail demand, making NNN investments safer.
6️⃣ Business-Friendly Environment
Low corporate income tax (6.5%), tax incentives, and business-friendly laws encourage tenant stability.
7️⃣ Diverse Tenant Base
Alabama’s retail and industrial sectors are expanding, making it a solid location for essential businesses (Dollar General, Walgreens, 7-Eleven, QSRs, etc.).
Cons:
1️⃣ Slower Property Appreciation
Compared to high-growth states like Texas or Florida, Alabama’s real estate appreciates at a slower rate.
Investors focused on quick appreciation may find better options elsewhere.
2️⃣ Tenant Demand is Location-Dependent
While major cities (Birmingham, Huntsville, Mobile) are growing, some rural areas may struggle to attract strong tenants.
Investors need to research tenant demand carefully before buying.
3️⃣ Hurricane & Tornado Risks
Certain areas (especially Mobile & Gulf Coast) are prone to hurricanes.
Central and northern Alabama experience tornado activity, which can impact insurance costs and tenant stability.
4️⃣ Limited High-End Retail & Urban Growth
Alabama’s retail market leans toward essential businesses (Dollar General, AutoZone, etc.), not luxury or high-end tenants.
Investors looking for urban development projects or high-density retail may have fewer options.
5️⃣ Economic Dependence on Specific Industries
Alabama NNN Properties for 1031 Exchange
Invest in Free Standing Single Tenant Triple Net (NNN) Properties in Alabama
Are you looking for a reliable 1031 exchange replacement property?
At Triple Net Investment Group, we specialize in the sale of single tenant NNN properties and triple net shopping centers across the United States. Our team is dedicated to helping investors find high-quality (Tenant Triple Net) NNN properties in Alabama and nationwide that align with their financial goals and 1031 exchange requirements.
With our in-depth market knowledge and personalized service, we provide tailored investment strategies for both buyers and sellers of commercial real estate. Whether you’re looking to defer capital gains through a 1031 tax-deferred exchange or want to diversify your portfolio with income-generating assets, our team offers a wide selection of vetted NNN investment properties.
Corporate Tenant Credit Ratings
Find out more about the credit rating of the tenant before purchasing.
How safe are the triple net investment grade free standing single tenant properties?
Market Analysis
What three things should I know before investing?
Call or e-mail us and we will get back to you within 24 hours. We know of properties for sale that aren’t listed or advertised.
Email: info@nnndeals.com Tel: 202-361-3050
We strive hard to provide clients with quality costumer service
We provide our clients with all of the information they need upfront to make an informed decision, even before a Letter of Intent is issued such as: tenant credit information, store sales, lease terms, options, renewal rates, rent escalations, location analysis, site analysis, market analysis, demographic data, cash on cash returns on investment, internal rate of returns after taxes, risks, likes, dislikes and so on. We will then strategies how to proceed on making a best offer. It is our goal to build a solid relationship with our clients and keep them updated on net lease investments, even though they may not have a need for years to come.(NNN Properties in Alabama)
We markets our listings locally, nationally and internationally
Triple Net Investment Group difference is a concept that is revolutionary in the commercial real estate brokerage business. In addition to marketing our deals to potential investors, We markets our listings to the entire brokerage community. We put our listings directly in front of thousands of commercial real estate agents in each state, region and local where the property is located.
