Looking for Triple Net Investments?
One of Austin Zahn’s major areas of expertise is working Triple Net Deals. He is ready to work with you to help broker the buying and selling of triple net properties (also referred to as NNN properties).
You can reach him daily via phone 310.613.1251
You can reach him via email Austin@LyonStahl.com
Sign up here for Austin’s triple net mailing list and get deals emailed to you that fit your criteria.
What is Triple Net?
Triple net properties are a niche market in the grand scheme of commercial real estate that offer unique advantages to investors. We’d like to discuss those advantages, but best to first start with a basic understanding of what makes a property a net lease property, or a triple net property.
Typically, when talking about a triple net property, it’s referring to the lease structure. A triple net lease is a lease in which the tenant (or occupant of the building) is responsible for paying all of the operating expenses associated with a property including property taxes and insurance.
It is considered a “turnkey” investment as the owner is not responsible for paying any of the operating expenses. These triple net (NNN) deals are typically free standing buildings with a single tenant (although can have 2 or more tenants), with long-term leases in place. They tend to be stable, brand name tenants that have stable financials.
How to Find Triple Net Properties for Sale?
When looking for triple net properties, they are often lumped together with double net (NN) properties – in which case some of the expenses get shifted back to the owner. Typically in this case, it’s either the roof structure, or some other expense like insurance or maintenance. Just make sure as you explore the triple net property listing sites, that you are able to identify triple or double net deal structures – it makes a big difference in the end with the amount of time required to “manage” your investment.
So Why Do Investors Love This Type of Asset?
Triple net properties offer several advantages, five of which are outlined below:
- Reliable Source of Income – Net lease assets tend to have long term leases with predictable cash flow
- No Management Hassles – Avoid management obligations and shift the burden to the tenant
- Tax Deferment – 1031 Exchanges allow you to defer 100% of your capital gains tax
- Stable Investment Holds Value – Long term tenants decrease your risk while your property can appreciate and regular rent bumps help protect you against inflation
- Flexibility – Assets can meet individual goals, that of your partners or large institutions
Financial markets can be unpredictable, which may lead to major losses. Triple net lease investments can help avoid losses and keep capital intact through all the uncertainty.
So by now, you can see why the net lease market is attracting all sorts of interest, from individual buyers to institutions. Austin can help you explore triple net properties and identify the best match to achieve your investment goals. Give him a call today at 310.613.1251.