Are NNN Properties good investments?
NNN is a good investment vehicle because it’s a source of passive income with minimal responsibilities for the landlord. Tenants also benefit from a lower base rental rate than a gross lease agreement.
What is $10 NNN?
The estimated operating expenses (aka NNN) are $10 per square foot per year. The total yearly rent you would pay equals $40 sf per year. So if you are leasing 3,000 sf then your yearly rent would be $120,000 or $10,000 per month.
What is cap rate on triple net lease?
In general, cap rates tend to vary based on location (and can range anywhere from 4% to 7%, though most tend to be somewhere between 4.8% and 5.25%), according to a few different variables including: Geographical Location. Triple Net Property Location. Market Size.
What are the best triple net leases?
The Best NNN Properties 2022
- Dollar General.
- Retail pharmacies.
- Gas & convenience stores.
- Fast-food/QSRs with drive-thrus.
- Early Education Centers & Child Care Assets.
What is $20 NNN?
Lease Rate: $20.00 /SF NNN (Estimated NNN = $3.25/SF), meaning the base rental rate is $20.00 per square foot per year and the property expenses, which include property taxes and insurance, are estimated to be $3.25 per square foot per year, though they can fluctuate from year to year.
What is a good NNN cap rate?
NNN Cap Rate You will see all NNN properties for sale advertised with the cap rate, or capitalization rate, usually between 5.50% and 7.00%. This number is the level of equity return on your investment for a single year. A higher cap rate, which would indicate slightly more risk, typically provides a better ROI.
What is a good cap rate for a rental property?
In general, a property with an 8% to 12% cap rate is considered a good cap rate. Like other rental property ROI calculations including cash flow and cash on cash return, what’s considered “good” depends on a variety of factors.
Where can I find NNN properties for sale?
LoopNet also attracts the largest community of commercial real estate professionals looking for NNN Properties with more than 7 million members comprised of brokers, corporate executives, service providers, and more than 3 million buyers, tenants and other principals. Find NNN Properties for sale at LoopNet.com.
What does NNN mean in a lease?
The lease is structured as triple net (NNN) with landlord being responsible for certain repairs to the exterior walls only. All other expenses is the tenants responsibility. This is a great asset with store sales being above national average and increasing every year.
Why invest in NNN properties with brand name National Credit tenants?
Well located Single Tenant NNN Properties with Brand Name National Credit Tenants has proven to be more resilient compared to other asset classes. Net Lease Investments gives investors an opportunity to choose from many National Brand Name Credit Tenants that are essential businesses and are places consumers shop, eat and visit every day.