NNN Leases in Virginia

NNN Leases in Virginia

In commercial real estate, the NNN lease—commonly referred to as the triple net lease—but what does that really mean? Below, you will find more information about the NNN leases in Virginia and how it may be the ideal investment decision for you to pursue. If you have any additional questions or if you would like to set up a consultation with one of the associates, please reach out to us today. We would like to help you get started on your journey.

What is a NNN Lease in Virginia?

A Virginia NNN lease is an investment property that is most likely occupied by one tenant who has chosen a long-term lease. When this is the case, the tenant is then responsible for the operating expenses of the property. Many consider a triple net lease to be a turnkey-style investment because the landlord will not have to pay for the operating expenses. This means that the owner simply owns the land and collects a rent check while the tenant maintains their facilities. The expenses included are usually: Insurance, Utilities, Taxes, Repair and Maintenance

What kinds of properties are typically associated with triple net leases?

There are many different property types that are associated with triple net leases. These can range from retail buildings, to restaurants, to office buildings, and hotels. These buildings are typically fully leased by one or more tenants.

What is not included in a Virginia NNN Lease?

Unfortunately, one of the biggest misconceptions about a triple net lease is that it includes every single expense that is associated with the property. This is not necessarily the case. Although it’s true that a triple net lease can be considered turnkey if there is a strong tenant, there are certain expenses that you should still expect to cover. One example of a cost that is likely not covered is the accounting costs that a landlord’s CPA charges or the legal costs that the landlord’s attorneys charge. These types of charges are not usually things that break the bank, however, it is important to note that the tenant will likely not be covering them.

Are triple net lease investments risk-free?

Many people believe that triple net lease investments are risk-free. It’s true that there is usually a predictable revenue stream as a result of the long-term leases. Another great benefit to the triple net lease is that there are little to no management requirements. One risk to consider is when a tenant—even a financially strong tenant—goes bankrupt over the term of the lease. When you do look into a triple net lease investment property, you must be sure to look through the potential tenant’s financial statements and asses the credit risk.

Get Help With Your Lease Type NNN in Virginia from Calkain Companies LLC

If you have any more questions regarding a NNN lease in Virginia, or if you would like to speak with one of our associates, please contact Calkain below.

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