Triple Net Lease Explained
Many property owners are choosing to engage in single, larger
triple net lease commercial
investment property investments instead of a sole ownership triple net lease. This form of ownership is known as a
tenants in common investment.
Triple Net Lease-tenants in commons are particularly popular because of their predictable cash flow backed by national credit tenants. Moreover, it is common for a
tenants in common sponsor to convert a multi-tenant
investment property into a
triple net lease through a master lease structure where they lease the
investment property back from the property owners on a
triple net lease basis.
Consider the Advantages of
tenants in common triple net lease investment properties :
1. Freedom from Management: tenants in common-
triple net lease investment properties are managed by National
investment property companies on the property owner’s behalf. With no more
investment property to manage, you have more leisure time to relax or pursue other interests.
2. Ready Availability: There is usually a steady supply of tenants in common-
triple net lease replacement
investment properties for purchase.
3. Own Higher Quality
investment property : exchangers can invest in larger, higher-quality institutional
investment properties than they were able to invest in as individuals.
4. Assisted exchange Process: You do not have to do the legwork to find the
investment property that you want to buy.
5. Flexible Investment Size: Variable minimum investment requirements help property owners match
investment properties with their equity and/or debt needs.
6. Diversification. Proceeds may be split among several
tenants in common triple net lease investment properties.
7. Non-Recourse Debt: Pre-arranged non-recourse financing limits property owner’s liability.