Single-Tenant vs Multi-Tenant Triple Net Lease Properties by Christopher Sanz, JD, LLM

Posted on August 24, 2021

Triple net lease (NNN) properties are always in-demand among both private individuals and institutional investors seeking steady income with few ownership costs and minimal property-management responsibilities. By most accounts, they are the true definition of “passive income investments,” regardless of whether the properties have one tenant or multiple tenants. While some investors believe that the risk of tenant vacancies and disruptions to cash flow are reduced when a property has multiple tenants, research has shown that those risks are even lower for a well-located property with just one, creditworthy tenant.

The key to success with single-tenant properties comes down to investors’ due diligence. Thorough property inspections, cash-flow analysis and proper vetting of tenants’ financial circumstances and credit rating are always required.

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.