When it comes to the potential advantages of investing in a triple net lease in California, here’s something to consider: one of every eight people in the United States lives in the Golden State.¹
Florida is well known for its warm weather, sun-soaked beaches, amusement parks, and the Kennedy Space Center, but it also can be a great place for business.
Signing a long-term lease on a commercial property in California can bring about increased risk for your business since you’ll be on the hook for making those lease payments for three to five years, if not longer.
Real estate investors have long looked to Texas for commercial (and residential) investment properties. Small wonder – Texas has many large metropolitan areas that continue to flourish and grow, and it’s earned a reputation as a tax and business-friendly state. Tesla and Oracle already abandoned their California headquarters for new digs in Austin, while Hewlett-Packard is moving its corporate operations to Houston later in 2022.¹
Real estate investors seeking investment properties that offer the potential for fewer managerial duties and lower owner costs often turn to single tenant net leased assets. Single tenant properties are 100 percent occupied by a solo tenant that is responsible for paying all maintenance costs, as well as property taxes and insurance, which can result in fewer ongoing financial responsibilities for the property owner.
If you own a piece of land, entering into a triple net ground lease (NNN) can offer you long-term, passive income. By partnering with a developer on an NNN, you may be able to grow your real estate investment portfolio, earn money, and defer capital gains taxes you would have owed on selling your property.