What is a Single Tenant Net Leased, NNN, Net Leased or Triple Net Leased investment property? 

Typically it is a freestanding office, retail, or industrial building that is leased by a credit tenant for at least ten years. Depending on the lease, tenant usually maintains and is responsible for the entire building and parking lot including all insurance costs and property taxes. Most of the leases are triple net or double net. Triple Net is a term that refers to the tenant paying all costs of the lease such as taxes, insurance and common area maintenance (CAM) and in many cases responsibility for roof and parking lot replacement along with integrity of the structure. Double Net has the owner/landlord ultimately responsible for the roof, structure and parking lot replacement. The term single Net can have varying meanings and a close reading of the lease in all cases will determine who is responsible for what.  Why acquire Single Tenant Net Leased, NNN, Net Leased and Triple Net Leased properties?   

1. Minimal if any property management required by owner/landlord;

2. PREDICTABLE returns on money unlike the constantly fluctuating stock market. The stock market is not only incredibly volatile, it is very irrational, and no matter what stock brokers say, performance of a company's stock is not directly related to the peformance of the company. In real estate, its value is usually derived directly from the income the real estate produces. The thinking of investors needs to be refocused on the fundamentals of good business and consider Single Tenant Net Leased, NNN, Net Leased and Triple Net Leased properties instead of the terribly volatile and irrational stock market;

3. Many of the properties have long term leases from ten to fifty years which means little if any tenant turnover and releasing responsibilities;

4. Many of the tenants are national and international companies with outstanding credit;

5. Favorable tax consideration with owner/landlord able to deduct depreciation of the building (consult with a Certified Public Accountant).

What are the range of prices of Single Tenant Net Leased, NNN, Net Leased and Triple Net Leased properties?

Walgreens $3.5M to $7.0M

McDonald's $1.8M to $4.0M

AutoZone $1.0M to $3.0M

The above price ranges can change depending on the property's market demographics and where the property is located.