In almost every state we have dozens of properties that can be used in both a 1031 exchange or an NNN real estate investment. Compared to office, warehouse, storage facilities, parking lots, apartments and other forms of commercial investments, triple net leases are by far the most stable and less burdensome of the opportunities available. Most often, NNN tenants are national franchises such as Walgreens, Dollar General, or McDonald’s who want control of all … However, in most NNN leases, the landlord does not pay operational expenses and capital expenditures during the lease term. Can you guess what happened with his numbers to make everything negative? A lot of triple net investment properties are sold towards the end of a longer term lease, shifting the risk of re-leasing the property to the new owner. Triple net leases are commonly used for long-term periods (ten years or more) in freestanding commercial buildings leased to one tenant. So you buy the building and never have to pay expenses for the building—McDonald’s would pay it all. If you have a triple-net lease, you most likely are required to pay property tax, building insurance and CAM charges. Triple Net Leases: Allocating Maintenance Expenses Among Tenants. A triple net lease is one of three types of net leases, a type of real estate lease where a tenant pays one or more additional expenses. “Triple Net Lease (NNN)” : Un bail triple net est un contrat de location qui désigne le locataire comme étant seul responsable de tous les coûts relatifs à l’actif loué, et ce, en plus du loyer du bail.Ce type de contrat permet au propriétaire de savoir exactement quelles sommes il va toucher chaque année car tous les coûts et aléas sont à la charge du locataire. Before discussing property with a NNN lease it’s important to understand the general differences between the three main types of commercial leases. Partnering with a trusted, experienced buyer’s broker from Westwood Net Lease Advisors will make for a smooth process and alleviate the unknowns as we advocate for you to get you the most passive, transparent triple-net investment for your needs – all at no cost to you. These terms are used interchangeably and mean the same thing; the Basic Rent is net to the landlord. At Triple Net Investment Group, Net Lease Investment Firm. Net leases can also go by the name of Triple Net Leases or NNN Leases. With the popularity of the triple net lease, we have seen a disturbing trend towards tenants insuring leased buildings for the property owner. This is your share of the cost to maintain the building’s upkeep, including common areas such as lobbies, hallways, garages, and elevators. He or she will thoroughly evaluate the lease and ensure your best interests are represented. Apr 4, 2019 | Investment Properties, Real Estate Investment, Triple Net - NNN or Net Net Net. Related: Triple Net Lease Investing (NNN): The “No Toilet” Method to Real Estate Investing. They create a reliable income and take away a lot of the risk associated with owning property. A triple net (NNN) lease is the most common type of net lease, and generally provides that a tenant pays the landlord for its proportionate share of real estate taxes, insurance, and operating expenses (usually specifically defined) in addition to the tenant’s base rental payment. They willingly do their own maintenance, use their own vendors, order their own signage, pay for CAM and operating expenses over and above CAM, and capital expenditures. Landlords will bargain for a clause that makes the tenants pay for as much as possible. On a basic level, the terms of the lease include the tenant paying all or part of the costs of property taxes, insurance, and maintenance for the building. Parking and Signs. Because the tenant handles typical landlord duties, a triple net lease is ideal for someone who is too busy to deal with HVAC issues and structural repairs on their own time. So the risk of doing a triple net lease investment, is what happens when the lease ends? Parking Lot. Triple Net Lease (sometimes called net-net-net or NNN): The tenant pays all of the operating expenses, taxes, and insurance. Common areas are … As a triple-net lease property owner, it’s simple to calculate CAM – the tenant pays for 100% of those charges as defined in the lease. By Janet Portman, Attorney. There are many different operating expenses that need to be clearly defined and paid for by either the landlord or the tenant as outlined in the terms of the lease. Insuring your triple net lease property is an important component of protecting your investment. Westwood Net Lease Advisors has made every attempt to ensure the accuracy and reliability of the information provided. Below is just a sample of the properties we have available in Hawaii. NNN Lease – This is a lease where the base rent is net to the Landlord. single family homes or apartment buildings, Commercial Real Estate Investing for Beginners. The triple net lease is a type of lease that passes on three of the biggest responsibilities associated with a piece of commercial property. That’s why the selection of a reputable “buyer’s broker” is very important in the process. The tenant agrees to a long-term lease that requires paying the “net” amount for three types of costs. Net leases can also go by the name of Triple Net Leases or NNN Leases.