Net Lease Investment
Net Lease Investments or Triple-Net (NNN) properties are specialized income-producing, commercial investment product. NNN assets are bought & sold by commercial investment professionals with many owned by individual investors. NNN assets are regularly traded by REITs.
Landlords appreciate the Tenant paying the taxes, insurance, and operating costs. Plus, the Tenant is usually responsible for building repairs & improvements during their lease term. The Landlord collects rent payments with minimal property responsibilities.
Investment risk parallels the potential ROI most often measured as Cap Rate. NNN investments require thorough understanding of tenancy including term, conditions, clauses and guarantees.