NNN / Net Lease
Triple-net investments with stable, long-term cash flow. Corporate-guaranteed tenants and passive income.
What Is a NNN Net Lease?
In a triple-net (NNN) lease, the tenant pays base rent plus all three operating expenses: property taxes, building insurance, and common area maintenance. The landlord collects rent with minimal management responsibility. It is as close to passive income as commercial real estate gets.
NNN properties are popular among investors, retirees, and 1031 exchange buyers who want predictable cash flow without the headaches of active property management. The best NNN deals feature investment-grade tenants (think national pharmacy chains, quick-service restaurants, dollar stores) on long-term leases with built-in rent escalations.
REMAX Commercial Real Estate advisors bring specialized NNN expertise and investor relationships to every transaction. Florida is one of the most active NNN markets in the country, driven by population growth, strong retail fundamentals, and investor demand. I help buyers source quality NNN assets and sellers position properties for maximum value.
Key Considerations for NNN Investing
Tenant Credit
Investment-grade tenants (S&P rated) offer the lowest risk. Franchisee-operated locations may carry higher cap rates but more credit risk. I help you evaluate the difference.
Lease Term
Longer remaining lease terms command lower cap rates (higher prices). Properties with 5+ years left on a corporate lease are the most liquid. Short-term leases introduce renewal risk.
Rent Escalations
Built-in annual increases (flat or CPI-linked) protect against inflation. A 2% annual bump compounds significantly over a 15-year lease. I model total return over your hold period.
Location Quality
Even with a strong tenant, location matters. A well-located property retains value and re-leases more easily if the tenant departs. I evaluate both the tenant and the real estate.
Interested in NNN Investments?
Tell me your investment criteria — cap rate target, budget, tenant preference — and I will source matching opportunities.