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Top 10 Reasons Why Net Lease is the Best Commercial Real Estate Investment

Why Invest in the Net Lease Market?

Investors choose to invest in net lease properties for several reasons. Net lease assets offer a reliable source of fixed income with little to no management hassles.  These investments tend to be long term and have investment grade tenants that reduce risk and the often include rent increases which benefit the investor.  Further, with certain properties, as with other commercial real estate, the property itself may become a generational investment that overtime, due to the location, significantly increases in value on top of the income flow.

Top 10 Reasons to Invest in the Net Lease Market

  1. Passive Income – “Mailbox Money”

    The investor does not need to be actively involved in the management of the property and collects rent check each month.

  2. Increased Property Value

    As the landlord, and depending on the lease, you can negotiate higher rental terms thus increasing the value of your property.

  3. High-Quality/Credit Worthy Tenants

    Most net lease market transactions are the buying and selling of national brand tenants and these tenats usually come with good credit. This means you can count on them to make the rent payment each month. Net leases are often backed by corporate guarantees.

  4. Attractive Financing

    lenders prefer net lease transactions as they also know it creates stable income.

  5. Low Turnover Rate

    This low rate helps you, the investor, get better financing, and alows you to not focus your efforts on leasing and the expenses of marketing your property.

  6. Attractive Price Points

    Net leased assets tend to range from under $1M to anywhere under $10M. Depending on the location, length of lease, tenant, and other factors you can determine what is the best price for you.

  7. Higher Liquidity

    Net lease market advantages are know across the industry. This helps you sell quickly if you need an exit strategy

  8. Opportunity to conduct a Sale-Leaseback Transaction

    These deals happen when a company owns a building that they currently occupy, but need to sell it to raise funds for some part of their business. After the sale, they will lease back the space.

  9. NO management responsibilities

    NNN leases mean no costs or responsibilities fall on the landlord.

  10. Most importantly…STABILITY

    To finish off this list of triple net lease pros and cons…These are stable assets with long-term leases. This guarantees money for you and with low turnover, you are able to plan for the long-term.

Amanda WillisTop 10 Reasons Why Net Lease is the Best Commercial Real Estate Investment

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