3 Benefits of NNN Properties as an Investment Option

3 Benefits of NNN Properties as an Investment Option

A triple net (NNN) property is an attractive investment option for investors.   These are typically single-tenant retail properties leased to tenants with high credit ratings on “net, net, net” terms (hence the NNN acronym).

The NNN structure will provide a consistent income flow with minimal management obligations for you.  In a NNN lease the investor’s only responsibility could be collecting and depositing their rent check!

If you are thinking about investing in a NNN property, you, the investor, should consider the following benefits:

  1. Passive Investment
    Typically the tenant is responsible for all real estate taxes, insurance and all maintenance.
  2. Predictable Revenue Stream
    Because all property-related expenses are the responsibility of the tenant, the investor’s net cash flow is protected from fluctuations in expenses.
  3. Portfolio Diversification
    NNN properties provide many of the same benefits as investing in other real estate classes.

Of course, no investment is risk free, including NNN properties.

NNN properties are an appealing option for investors seeking steady returns with minimal management responsibilities but are not immune from risk.  To learn more about popular tenants for this property type, contact Doug Shea, at INCO Commercial today!