Single Tenant Net Leased Investments (NNN)

What Is A Single Tenant Net Leased Investment?

Triple net leased properties are typically single tenant commercial, industrial or office properties with long term leases backed by corporate credit. The leases usually obligate the tenant to pay the real estate taxes, insurance and building maintenance. Properties of this type are usually leased to national or regional retailers like Walgreen's, CVS Drugstores, Wal-Mart, Circuit City, Best Buy, Family Dollar, Home Depot, Blockbuster, and Federal Express.

For companies doing sale and lease backs, the benefits are many. It is an important source of financing core competencies, allowing for acquisition, paying down debt and redeploying capital into more productive uses. Owning a significant amount of real estate assets is not the best use of capital. A company can achieve greater value from selling a building it occupies than selling an empty one when it's ready to vacate.

Investors get significant benefits from the sales lease back transaction in several ways. A sale lease back establishes a stable long-term cash flow, with the increasing operating cost being passed along to the tenant, and the investor does not have to pay for capital improvements. Quite often upon the expiration of the lease terms, the investors own the property free and clear.

The Single Tenant Properties Market

During the 90's investor interest in passive commercial real estate ownership began to grow dramatically. Many successful real estate investors are now searching for ways to simplify their real estate holdings by divesting themselves of management intensive, multi-tenant properties, and acquiring less complicated real estate holdings, thus avoiding paying capital gains tax on their exchanges.

Single tenant, net leased properties are one of the most desirable investments for this class of investor. Ferrer Real Estate’s access to this market has allowed us to be in a position to represent Buyers who understand the advantages of owning single tenant, net leased properties.