A double net lease is a type of commercial lease agreement in which the tenant is responsible for paying both the base rent and a portion of the property taxes and insurance premiums. The base rent is typically lower than it would be under a triple net lease agreement, in which the tenant is responsible for all three of these expenses.
What is a good cap rate for a triple net lease?
A "good" cap rate for a triple net lease will depend on a number of factors, including the location of the property, the creditworthiness of the tenant, the length of the lease, and the prevailing market conditions. Generally speaking, a triple net lease with a creditworthy tenant and a long lease term will command a lower cap rate than a similar lease with a less creditworthy tenant and/or a shorter lease term.
What is a single tenant net lease?
A single tenant net lease is a type of lease agreement where the tenant is responsible for paying all property-related expenses, in addition to their regular rent payments. This includes expenses such as taxes, insurance, and upkeep/maintenance costs. The advantage of this type of lease agreement for the landlord is that they can be assured of a fixed monthly income, without having to worry about unexpected repairs or other expenses. The disadvantage is that the landlord is essentially giving up all control of the property to the tenant, who may not take good care of it.
What are the three parts of a triple net lease? A triple net lease is a commercial lease agreement in which the tenant is responsible for paying all of the property's operating expenses in addition to the rent. The three "nets" in a triple net lease are property taxes, building insurance, and common area maintenance (CAM) fees.
Are NNN properties good investments? There is no definitive answer, as the investment potential of NNN properties can vary greatly depending on a number of factors. However, NNN properties can often be good investments due to their potential for high income and low maintenance costs. Additionally, NNN properties are often easy to finance and can appreciate in value over time.
Is NNN monthly or yearly?
NNN stands for "net, net, net," and it refers to a type of lease in which the tenant is responsible for paying all of the operating expenses of the property, in addition to the base rent. This type of lease is typically used for commercial properties, such as office buildings, retail space, or warehouses.