The Benefits of Investing in a Single Tenant Virginia Offers
Traditionally, real estate has been considered a safer investment than some of the alternatives. That is, if it’s the right kind of real estate. But what is the “right” kind of real estate for investment purposes? For some, the answer to that question is single tenant, triple-net-leased properties. In fact, they much prefer this type of investment over multi-tenant assets. There are many reasons for this. At Calkain, we specialize in providing single tenant opportunities in Virginia for investors. Give us a call to find out more about this and other types of real estate investments that may be of benefit to you.
The Advantages of Single Tenant, Triple-Net-Leased Properties in Virginia
Talk to one of our specialists at Calkain in Virginia to find out if a single tenant lease arrangement is right for you based on your situation and goals. However, for many investors the following reasons are what makes this type of investment ideal:
· The tenant is responsible for maintaining the property, rather than the investor.
· The tenant is responsible for paying for property maintenance, taxes, and insurance, rather than the investor.
· The investor enjoys a consistent income when the property is rented or leased by a tenant who pays their rent on time.
· The investor typically receives a higher yield on a single tenant building than for a multi-tenant building investment.
The Availability of Single Tenant, Triple-Net-Leased Properties in Virginia
Due to the popularity of multi-tenant building leases, they are not as available as they once were, which can drive up pricing and availability. By contrast, the availability of single tenant, triple-net-leased properties is on the increase. And because supply is higher, cap rates are lower, which further makes it attractive for investors. In 2010, single tenant sales reached $4.7 billion, which was 28% of all sales of industrial properties. That was a 90% increase over the previous year.
Single Tenant Retail Investments in Virginia
Institutional buyers increasingly began realizing the value of purchasing single tenant retail units in the first quarter of 2011. This particular investment market increased from six percent in 2010 to 20%.
- Publicly traded real estate investment trusts have also increased in popularity, growing from seven percent of all single tenant retail purchases in 2010 to 29% by mid-2011.
- Sale leasebacks account for around 20% of the single tenant market. In part, this is because of consistent low interest rates which make it attractive for companies to sell their real estate properties but lease them back from the purchaser. It also enables the companies to take advantage of low rent.
The Advantages of Sale Leaseback Single Tenant Investments in Virginia
A specialist from Calkain can meet with you and review your portfolio, financials, and other factors that will determine which type of single tenant investments may work best for your needs. For some, sale leaseback investments are an option and one which many prefer because it can generate consistent capital.
Single tenant investment options are varied and numerous. Call us at Calkain to learn more. Request a free consultation when you talk to one of our specialists in Virginia to find out how we may be of assistance to you.Single Tenant Virginia