If you are looking for NNN Retail, you probably already have a good understanding of what it means to be NNN, but let’s make sure. NNN Retail, or triple net retail, generally refers to the niche segment of the commercial real estate net lease market that are free standing, single-tenanted buildings in which, by terms of the lease, all of the management and operating expenses of maintaining the building are shifted to the tenant. In true NNN deals, the burden of taxes, operating expenses and maintenance and repairs are the sole responsibility of the tenant.
When you are talking about buying and selling NNN Retail, it is the actual sale of the building and/or ground, along with the lease from the tenant. It is not the sale of the business operating out of the building, or in many cases the franchisee. As an example, with the sale of a NNN Retail building, say a Wendy’s, is the sale of the structure and land that the Wendy’s is operating out of, with the guaranty of the in-place lease. The new owner has nothing to do with the actual Wendy’s – only the responsibility of collecting the rent check each month.
Within the net lease marketplace, there are various sectors; to name a few: quick service restaurants (QSR), casual dining, banks, automotive, convenient store (commonly referred to as c-store), and of course, retail. Specifically, retail is thought to tenants like Verizon Wireless, mattress stores, etc., however, it is common to group all of these together when referring to NNN retail. If you are looking to invest in net lease real estate, and NNN retail in particular, you will want to know your research as different sectors of the net lease market perform differently, and also varies by location.
Working with an experienced firm like Calkain Companies can help you make the right investments in NNN retail. We are focused solely on net lease and have built a track record of helping clients maximize the value of their net lease portfolios and continue to build wealth. Our expert brokerage team has an expansive network in place to continually know what is on the market, what may be coming to market, and has a vast set of comparables at their disposal to help understand market trends.
Our team is backed by a strong research team that scours the market for NNN retail transactions and is continuously providing data to our team to enable faster, more informed decisions. Our research team also provides a useful research tool, www.netleaseadvisor.com, which provides up to date information on NNN retail tenants – highlighting their credit, trends with the companies, and an tenant overview that can be useful adding another layer into the mix for determining the value of an asset. With bi-annual cap rate reports, regular tenant overviews, and constant tabulations on market comparables, our research team arms our brokers with a unique insight to NNN retail and has proven invaluable to our clients. To find out more about our research team, visit www.calkain.com/research.NNN Retail