Single, Double, and Triple Net Leases: Understanding Key Differences
When it comes to commercial real estate investing, one of the most important aspects to understand is lease structures. As a concept, leasing may seem straightforward — your tenant occupies your asset and pays rental income. However, there are many kinds of leases out there, and some divide the expenses between the tenant and the landlord. These structures are called net leases.
Why Investors Choose Triple Net Leases: Key Benefits and Risks
Triple net leases, otherwise called NNN leases, have been gaining popularity over the past few years due to the benefits these structures offer, especially for commercial property investments.
ESG Considerations for Triple Net Lease Investors
Both real estate investors and tenants alike are more discerning than ever, and many now include sustainability as a major factor in their choice of property.
Understanding Cap Rates for Triple Net Lease Properties
Are you an investor seeking passive and predictable income? A triple net lease (NNN) property is a promising choice. Before parting with your money, though, you’ll want to assess and understand everything there is to know to get a full picture of the investment’s health. One of the most critical metrics is the capitalization rate, or cap rate. This measures the potential return on a property.
DST Investments: Navigating SEC and FINRA Regulations
Delaware Statutory Trusts (DST) may offer tax deferral and passive income, but they must also adhere to certain rules to ensure investor protection and eligibility for specific benefits. Aside from the IRS, there are two more governing bodies that, in some ways, regulate DSTs — the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA).
Evaluating Delaware Statutory Trust Investments in Self-Storage Facilities
As you prepare to invest in a Delaware Statutory Trust (DST), you’ve likely become aware that some of these investment vehicles concentrate on a few key industries. One of these sectors is self-storage, which has seen a rising demand in recent years due to factors like increases in rent and the boom of e-commerce.
Managing Risk in DST Investments During Economic Downturns
Delaware Statutory Trusts (DSTs) are an attractive investment option, providing benefits like tax deferral, enhanced diversification, and passive income. However, like any other investment, DSTs are unfortunately vulnerable to economic downturns. Inflation, recession, and other negative economic activity all affect the income of DSTs, possibly resulting in less-than-ideal returns. Can investors do anything to address these challenges?
DSTs and Green Real Estate: Investing in Sustainability
You’re likely well aware that as the effects of environmental degradation and climate change become more apparent each and every year, the movement toward sustainability also becomes stronger. Even in real estate investing, there has been an increased demand for green properties that have minimal environmental impact and promote sustainability. With this in mind, investors are now looking for assets that combine financial performance and environmental sustainability.
Using DSTs To Access Institutional-Quality Real Estate
Acquiring ownership of an institutional-grade real estate asset is a dream for many investors. However, the high upfront costs and formidable management requirements make this aspiration nearly impossible unless you’re ultra-wealthy. Don’t give up hope! Some methods can help you participate and enjoy the benefits of institutional-quality assets, and one of these is the Delaware Statutory Trust (DST).
What Investors Should Know About DSTs for Senior Housing
One undervalued aspect of Delaware Statutory Trusts (DSTs) is how they can specialize in one asset type or sector, allowing the investor to fully capitalize on the stability or growth of that specific niche. An industry that offers steady returns and long-term growth is senior housing, and now that the U.S. population is aging, DSTs concentrating on this asset class are more likely to encounter a few unique advantages.
