The Triple Net Lease: Why is it So Popular?

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Triple Net Leases for Commercial Real Estate

• Commercial Real Estate 

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Triple Net Leases are So popular.

• A NNN is often used by retail companies such as
  Walgreens where these tenant companies pay all
  the propertys expenses from the monthly rent and
  utilities to real estate taxes, ongoing
  maintenance and building insurance.

• These leases are engaging to these organizations
  because their monthly rent is lower and they can
  deal their brands and all aspects of customer
  interaction with their companies on site more
  closely, which is significant for retail chains
  especially.

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Characteristics of Triple Net Leases

• The proprietor of the commercial property is only
  answerable for the mortgage, which is paid
  through the rent collected from the tenants. This
  is very appealing for owners as they have lower
  risk while getting consistent long haul pay.
  Most of these leases run from 5 to 10 years on
  average and are typically renewed as long as the
  company operates in the area.

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Triple net leases are very popular today

• They offer regular income to the owner investor
  while lowering risk and related costs.
• A commercial property for a triple net (NNN)
  lease can include an office building, an
  industrial park, a standalone building for a
  bank, pharmacy or restaurant chain or a shopping
  mall.
• Rent does go up annually and the lease typically
  lasts anywhere from 5 to 10 years on average.

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Benefits ofTriple net leases (NNN)

• Maintenance may still be done through an outside
  organization.
• Many businesses or organizations still contract
  for commercial real estate property management
  services.
• A triple net lease, the business would contract
  straightforwardly with the firm, while in other
  leases, the owner and landlord hires the company
  to provide commercial real estate property
  management services.

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