The Single Tenant, Net Leased Property Investment

Single Tenant, Net Lease Properties Investing

We would look like to give a reasonable definition of Net Leased Property Investment which may be a Single Tenant, and of course the premium with a Credit Tenant.
Typically, a Single Tenant, Net Leased property is a freestanding retail, or office building occupied solely by one user. This Single Tenant is bound by a long-term Lease of the building. The Net Lease obligates the tenant to pay the building's real estate taxes, insurance and maintenance costs.
A is has lessee bound by contract to pay any expenses related to the ownership of the property, including but not limited to utility bills, building repairs, annual taxes and insurance needs. It is sometimes referred to as a closed-end lease.

Double net (Net-Net) NN normally means that the Tenant pays for everything except structural repair. Some examples of the Net-Net could be a Dollar General or Dollar Tree Net Lease Property. We have seen some Walgreen's that are Net-Net (NN) but many can be found as Triple Net Leased Property.

My favorite is the Triple Net Lease (NNN) which means that the tenant is responsible for generally everything including structural repair. Each lease is different and it is best to check any lease in the negotiation process of a purchase. Walgreen's generally fall into this category. Some other Triple Net Lease Property Investments might have a Publix, Target, CVS, Kohl's or Taco Bell. McDonald's Properties and many banks such as Chase, BB & T and others could be a Triple Net Lease Property.