NNN Properties (triple net investments) is one of the most popular commercial lease types available today. Besides having tenants pay lease fees these properties also have them pay for things like property taxes, property insurance, and maintaining common spaces. The reason this structure is so popular is that it offers businesses more freedom. There are several ways in which you can benefit here.
More Control of the Property
While the typical American home averages about 1,500 square feet the average commercial property averages about 19,000 square feet. Investing in one of these properties allows your business to have greater control over the space that they’re renting. For instance, instead of calling and waiting for the landlord to come make a repair to their property when something goes wrong they can call and have the issues taken care of themselves.
Less Need for Maintenance
When it comes to owning NNN Properties landlords don’t have to be concerned about finding the time to put effort into maintaining these properties. Since it’s up to the tenant to handle any maintenance issues that arise the landlord has less of a workload. This workload is even further reduced when you consider the fact that tenants are also responsible for getting their own insurance and paying their taxes. These are yet a few more incredible benefits to owning one of these properties, especially if the landlord happens to work a full-time job or own other properties.
Additional Financing Options
Even if you’re the only tenant in one of these properties you’ll still have the investment written against you as the tenant. This means that it’ll go against your credit and the property’s value if something goes wrong. Therefore those who invest in NNN Properties will actually discover that they have more options available when it comes to financing. This also makes these properties a more stable investment.
The Bottom Line
As you can clearly see, there are many reasons why NNN Properties are so popular when it comes to leasing commercial properties today. One of the biggest benefits though is that the landlord isn’t held responsible for paying operating expenses. The trade-off here is that tenants feel like they actually own the property they’re renting. To determine if this is the right model for your business and consider just how beneficial it can be you’ll want to talk to a property management group in your area today.
