Why Invest in the Net Lease Market?
Top 10 Reasons to Invest in the Net Lease Market
Passive Income – “Mailbox Money”
The investor does not need to be actively involved in the management of the property. Net leases are reliable “hands-off” investments.
Increased Property Value
As the landlord, and depending on the lease, you can negotiate higher rental terms thus increasing the value of your property.
High-Quality/Credit Worthy Tenants
Most net lease market transactions involve the buying and selling of assets operated by national brand tenants and these tenants 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.
Lenders prefer net lease transactions as they also know these investments creates stable income. In other words, banks know you will be able to repay your loans.
Low Turnover Rate
Net leases are usually long-term and have multiple options in the lease. This means that you, the investor, does not have to worry about re-tenanting.
Attractive Price Points
Net leased assets tend to range from under $1M and up. Depending on the location, length of lease, tenant and other factors you can determine what is the best price for you.
Net lease market advantages are known across the industry. This helps you sell quickly if you need an exit strategy.
Opportunity to conduct a Sale-Leaseback Transaction
These deals happen when a company owns a building that they currently occupy, but need to sell to raise funds/capital for some part of their business. After the sale, they will lease back the space.
NO management responsibilities
NNN leases mean no costs or responsibilities fall on the landlord.
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.