3 Factors to Remember When Assessing Triple Net Lease Property

Posted on August 25, 2020

Savvy investors recognize the inherent benefits of triple net lease properties (NNN), in which tenants pay rent and all the other expenses of managing that property, including utilities, real estate taxes, insurance and costs for repairs and maintenance. Without these responsibilities, investors can pretty much sit back and collect a steady stream of passive rental income while building equity in those properties. However, not all NNN properties are created equal. Investors should still conduct thorough due diligence and focus on the following three factors:

  1. Geographic Location. Look for properties located in cities with a strong or strengthening economies, including positive employment levels and population growth?
  2. Physical Location. You want a property with good traffic, easy accessibility and a mix of different types of tenants, including a strong anchor that is either within the property or very close to it.
  3. Tenant Mix. If the COVID-19 pandemic has taught us just one lesson it would be that properties with essential businesses, such as grocery stores, pharmacies, hardware store, discount retailers and medical offices, will always attract consumers. Often, brands with a national presence with drive more foot traffic than mom and pop stores

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.