Coffee Drive Thru

Triple Net Focus

Why triple net leases work for these property types

Triple net lease properties are typically recession-proof, pandemic-proof businesses tied to lifestyle trends and necessity versus those tied solely to economic cycles. These property types commonly feature tenants that fit the three most important triple net investing criteria: tenant creditworthiness, location, and lease type/duration.

Businesses that commonly use NNN leases include auto parts stores, convenience stores, child care centers, car washes, dollar stores, drug stores, fast-food restaurants, gas stations, medical clinics, pet and veterinary clinics, and quick-service restaurants. These essential retailers have proven, even in the toughest economic times, their ability to stay profitable and maintain consistent rent payments.

• • Triple net lease tenants pay taxes, insurance, and maintenance so you collect passive income without day-to-day property management responsibilities.
• • Absolute, regular, and ground net leases distribute responsibilities in different ways, allowing you to choose the level of landlord involvement that fits your investment strategy.
• • NNN properties pair nicely with 1031 exchanges since tenants keep the asset turnkey, providing stable income while you defer capital gains taxes.
• • These properties offer periodic rent escalations that help cover inflation, tax opportunities through 1031 exchanges, and the ability to diversify by location, tenant type, and asset class.