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.
Multi-tenant net lease properties are simply buildings that have more than one tenant, usually each with a NN lease; therefore, the property owner has more than one lease to manage in order to occupy the building.
With the right mix of tenants, a multi-tenant property may return higher yields than a single tenant property, but a double net lease comes with added burdens and risks investors won’t see with a triple net lease property. The property owner of a multi-tenant building must manage a separate net lease (typically a double net lease) with each tenant occupying space in the building. These leases are rarely longer than seven years, which means a multi-tenant building is more vulnerable to being affected by the variation in market rents, in comparison to single-tenant properties, which are relatively isolated from short-term ups and downs. Investing in multi-tenant properties is a great fit for many investors, but it’s important to thoroughly understand the current economic conditions and market trends, along with an individual investor’s objectives, in order to determine the right investment property. This is exactly where Upland can help!