Are Triple Net (NNN) good investments? Commercial real estate investors like triple net (NNN) properties because they offer a stable passive income stream, without property management responsibilities and without significant investor involvement. René Nelson, CCIM, CRE with Pacwest Commercial Real Estate, answers the top five questions her clients ask about passive income and the opportunities available in commercial real estate.
Passive Income Property: Triple Net (NNN) Investments FAQ
1. What are the benefits of a passive-income property?
One of the major benefits of passive-income properties is that they are typically a single-tenant building, such as an AT&T store or Dollar General store. This usually means a secure, long-term lease corporately guaranteed on a national level by a triple-rated company that’s traded on Wall Street. This provides security and proven income—and the tenant typically is responsible for the majority of the maintenance. Read the full article here:
What Do You Know About Passive Income Properties? We know commercial real estate, both multifamily and triple net passive investment properties. We know the plusses and minuses of each, and what kind of returns you can expect. It’s knowledge every savvy commercial real estate investor needs.
2. What is a triple net lease and are there other types of leasing options?
A triple net lease is one of the most common lease types in the commercial real estate market these days. The tenant is responsible for paying rent, property taxes, insurance, and any maintenance costs. This makes triple net leases a favorite among landlords. But there are other types of leases. You can read about that here:
Looking at investing in commercial real estate? You’ll certainly want to take a moment to understand the different types of leasing options available. If you’re just plunging into the world of commercial real estate leases, you might feel a little overwhelmed by the different terms used in the field.
3. I am tired of property management responsibilities should I consider moving into a NNN property?
This is definitely worth your consideration. If you’re weary of dealing with tenant issues and clogged toilets, a triple net property can be a welcome respite. With an NNN lease, the tenant is responsible for maintenance and repairs! You can find more information here:
If you’re a real estate investor and you’re ready to be leave toilets and tenant issues behind, then it may be time to consider a 1031 exchange multifamily to triple net or 1031 exchange commercial to triple net. NNN leases offer real estate investors ongoing income minus the ongoing hassles of tenant-related issues.
4. Should I move my multi-family investments into triple net because of new laws?
Many of my clients are making this move right now. The major benefit is there is no government regulation on rent, and many triple net leases have built in annual rent increases. It is definitely worth considering! Read more here:
Should I Move My Multi-Family Investments Into Triple Net Because Of New Laws? – Pacwest Commercial Real Estate
In recent blogcast episodes, we’ve investigated new laws that may impact multi-family investments. In this episode, René discusses an excellent alternative investment: triple net properties. Read, Watch or Click to Listen: Today we’re talking with René Nelson, CCIM, a well-known multi-family expert and commercial real estate broker, about important changes being proposed to Oregon’s landlord and tenant laws.
5. Where can I go to get an overview of commercial real estate passive investment options and opportunities?
Many opportunities are available for those interested in passive investment in commercial real estate. You can read about the benefits of NNN properties as well as some great success stories here:
There are many reasons a multifamily property owner might consider moving into commercial real estate. The Oregon Rent Control Senate Bill 608 may influence some owners or maybe they are at the stage in their investment career where a passive property that takes less care would be the right fit.