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Updated almost 6 years ago on . Most recent reply
Bigger Pockets Podcast #333....Commercial Stuff
In listening to the podcast I can see that I will eventually be drawn to the commercial side of real estate investing... I have a question regarding Triple Net Leases... What is the benefit to the tenant of the Triple Net Lease? I can't seem to grasp why a tenant would ever want that type of lease. I have to imagine that there is a reason, but as a newbie, I can't figure out what it is. Thanks!
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#2 Land & New Construction Contributor
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- Charlottesville, VA
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#2 Land & New Construction Contributor
- Developer
- Charlottesville, VA
@Michael King NNN leases do not benefit the tenant. Only the owner. Most leases are structured to the benefit of the owner.
The only benefit to a tenant in a lease situation is having a place to operate. The better the location the less desirable the terms for the tenant. The less desirable the location the better the terms a tenant can negotiate.
It’s all about location, supply and demand