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What is a Credit Tenant?
Credit tenants generally provide cash flow reliability. These are larger, usually, publicly-traded companies that have investor-grade bond ratings. While that might sound attractive to landlords, it’s important to fully understand what a credit tenant is and which risks they may introduce. In this article, we’ll go over both.
What Is The Difference Between A Double And Triple Net Lease?
The term ‘net lease’ encompasses a group of different lease types. Each net lease type has a specific lease arrangement, which determines whether the landlord or tenant pays for certain expenses. Many people mistakenly group these different net leases together as just “net leased.” The two most common types of net leases are double net (NN) and triple net leases (NNN). They are often mistaken as the same kind of lease. In this article, we’ll look at what makes these two lease types different.
What Is A Double Net Lease?
Lease arrangements can be complex, but there is a specific group of well-known lease types that provide a few options for tenants without too much complexity. These are called net leases. In this article, we’ll discuss what a double net lease is and how it compares to other net lease types.
Risks of NNN Investing (Part 2)
Single Tenant Net Lease (STNL) properties are a popular option, particularly for investors doing a 1031 exchange who no longer want the day-to-day burden of being a landlord. STNL properties can be great investments, but they aren’t without risk.
What is a Credit Rating?
A key concept in real estate investing, particularly with single-tenant, net-leased properties, is the credit quality of the underlying tenant. A credit rating is an estimate of an entity’s ability to honor its financial commitments.
Six Benefits Of Single-Tenant Net-Leased (STNL) Properties Investments
A single-tenant net lease property is one which, as the name implies, is fully leased to one tenant on a net lease basis. The lease is often a triple net lease , meaning the tenant is fully responsible for all property operating expenses. A single-tenant net lease (STNL) offers investors the opportunity to own a (typically) freestanding property occupied by a single tenant. New leases for these properties are often longer-term (10 to 25 years) and tenants frequently include household-name businesses such as Walgreens, McDonald’s or Starbucks. In addition, net lease properties may provide the following investment benefits:
What Is A Net Lease?
If you’ve ever considered investing in commercial real estate, you’ve likely heard the term “net lease” or “triple-net” mentioned. Unfortunately, these terms can have different interpretations depending on the context and market. They are also amongst the most commonly misused terms in real estate, which can be quite confusing for potential investors.
Benefits and Risks of Investing in NNN Properties
A Single-Tenant Triple Net (NNN) property is an attractive investment option for a variety of investors. The NNN structure provides consistent income with minimal management obligations. In many NNN lease properties, the investor’s only responsibility is collecting their rent check! However, no investment is risk free, including NNN properties. If thinking about investing in a NNN property, investors should consider the following:
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