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.
Also, visit our Properties page to see Upland’s list of available net lease investment opportunities. For additional questions, please Contact Us.
In commercial real estate, a single tenant net lease property is usually a free-standing building, 100% occupied under a long-term lease, guaranteed by a single corporate tenant.
A single tenant investment property with a triple net lease can provide investors with a stable, attractive return, while providing a certain level of safety and security not available from many other investments. A standard triple net lease will allow for recurring rent increases that produce desirable annual cash yields, while transferring all or most of the responsibility of operating expenses on to the tenant. The locked-in long-term leases guarantee a fairly predictable future, with leases usually lasting longer than 10 years, and up to 25 years, with regular periodic increases in rent over the initial lease term. Because a net lease is typically much longer than a gross lease, the short-term movements in market rents usually have minimal impacts on an investor’s income from a net leased property.
While Upland deals with a wide variety of net leases, we specialize in the sale of single-tenant triple net lease properties on a national scale.