Calkain focuses solely on the net lease market, offering to help broker the buying and selling of triple net leased properties (also referred to as NNN properties). Triple net properties are a niche market in the grand scheme of commercial real estate that offer unique advantages to investors. We’d like to discuss those advantages, but best to first start with a basic understanding of what makes a property, a net lease property, or a triple net property.
Typically, when talking about a triple net property, it’s referring to the lease structure. A triple net lease is a lease in which the tenant (or occupant of the building) is responsible for paying all of the operating expenses associated with a property. It is considered a “turnkey” investment as the owner is not responsible for paying any of the operating expenses. These triple net (NNN) deals are typically free standing buildings with a single tenant, although it is not uncommon to have 2 or more tenants, with long-term leases in place. They tend to be stable, national tenants that have stable financials.
In the case of double net (NN) properties, the landlord is responsible for an expense that the tenant is not. Typically in this case, it’s either the roof structure, or some other expense like insurance or maintenance.