With a global financial market that is known to be volatile at times, investors are often looking for a stable and predictable place to put their money. Similar to buying a bond, investing in triple net lease properties is one of the smartest and most reliable investment tools available today.
While we know this is a great opportunity for many investors, it can be confusing to those unfamiliar with commercial real estate or 1031 exchanges. Let our experts walk you through the basics of buying and selling net lease properties.
A double net lease (NN) is an agreement in which the tenant (lessee) is responsible for both insurance and property taxes. (In a single net lease the tenant is only required to pay property taxes.) Typically, the landlord or property owner is responsible for expenses related to structural maintenance.
In commercial real estate, a double net lease is often associated with a property that has multiple tenants such as a shopping center. A multi-tenant property typically uses the NN lease structure because the property owner will have leases with multiple tenants who often share a spaces, such as a parking lot or roof. The landlord is usually responsible for the roof and structural integrity of the building, though other stipulations may be included in the lease agreement. Some single tenant properties may also have a NN lease.