Net Lease Investment Definition

A net lease investment is where the lessee is bound by contract to pay any expenses related to the ownership of the property, including but not limited to utility bills, building repairs, annual taxes and insurance needs. It is often referred to as a closed-end lease.

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What Are the Differences Between NN and NNN Property Investments?

NNN represents the National Retail Properties. This includes multi-tenant buildings such as high-rises and strip malls. These are typically deals made by strip mall experts to maximize profit. Most often they have co-brokers on the deals to generate higher sale prices.

NN stands for the Norfolk Network. This category of investments includes freestanding buildings. NN investments work well for start-up businesses and entrepreneurs.

Who Would Be Interested in Net Lease Investments?

Despite the fact the you are fully responsible for the property you are leasing, net lease investments offer the buyer a lot of flexibility with their business that they would not otherwise have. Net leased properties are mostly associated with larger, sure-fire companies like Wal-Mart, Kohl’s and Home Depot. They aren’t high-risk businesses and are almost guaranteed to make a profit. These types of businesses make up 75% of the net leased properties. The other 25% are chain restaurants.

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Why Would Someone Be Interested?

Investors interested in NN’s are more likely to have a passion about their business. They want to inform clients, grow their customer base and put their name on the market, while investors interested in NNN’s are more likely to be concerned purely with the profitability of the buildings.

How Do You Find Net Lease Investements?

Commercial Dex is a professional and effective way to find these types of investment opportunities. Search the free database to find properties that meet your criteria.