Net-Lease Investments or Triple-Net (NNN) properties are a specialized commercial investment product. NNN assets are often bought and sold by real estate investment professionals, but many are still owned by individuals and small business owners. At RE/MAX Results – Commercial Group, we work with Buyers and Sellers of NNN investment properties across the Minneapolis/St. Paul, Minnesota metro.
There are many moving parts to NNN investments. While they can be a fantastic income-producing, collateralized investment vehicle, they have their own inherent risks. Landlords appreciate the Tenants paying the taxes, insurance and operating costs and being responsible for building improvements. The Landlord collects rent payments with minimal, if any, property responsibilities.
Investment risk generally parallels the potential return on investment which is most often measured as Cap Rate. NNN investments require thorough understanding of tenancy including term, conditions, clauses and guarantees. They also require a worst-case plan for the owner which brings us back to the real estate and key factors including location, reuse, zoning, obsolescence and more. At RE/MAX Results – Commercial Group, we have brokers focused on net-lease assets for disposition and acquisition.