Net Lease Properties Information

Net Lease Properties

North Palm Beach, Florida - Net Lease Properties are becoming the highly desired investment vehicle for Commercial Real Estate Investors. We are seeing many Real Estate Investment Trusts (REIT) and foreign Investors gobbling up available net lease properties.

A net lease property investment is under contract whereas the lessee is bound by 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. Triple Net Lease Properties "NNN" are still our most desired investment holdings, as explained below.

A triple net lease (Net-Net-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three 'Nets') on the property in addition to any normal fees that are expected under the agreement (rent, etc.). In such a lease, the tenant or lessee is responsible for all costs associated with the repair and maintenance of any common area of that particular Net Lease Property.

Net Lease Properties & Commercial Loans

If a Net Lease Property is of interest to you then contact us, HERE. We can also assist you with your Commercial Loans for Net Lease Properties purchases. Some examples of net leased properties to purchase are a CVS, FedEx, Walgreens, Target, Publix or a property net leased to McDonald's, Dollar General, Burger King or Taco Bell.

The Single Tenant, Net Leased Property Investment

Single Tenant, Net Lease Properties Investing

We would look like to give a reasonable definition of a Net Leased Property Investment
which may be a Single Tenant, and of course the premium with a Credit Tenant.
Typically, a Single Tenant, Net Leased property is a freestanding retail, or office building occupied solely by one user. This Single Tenant is bound by a long-term Lease of the building. The Net Lease obligates the tenant to pay the building's real estate taxes, insurance and maintenance costs.
A Net Lease Property Investment has the lessee 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 sometimes referred to as a closed-end lease.
Many Investors look to Single Tenant, Net Leased Investments to simplify their portfolio by buying and selling properties that require little or no landlord responsibilities. This decreases the Investors costs in owning the portfolio and increasing the likelihood of long-term, stable income.

Double net (Net-Net) NN normally means that the Tenant pays for everything except structural repair. Some examples of the Net-Net could be a Dollar General or Dollar Tree Net Lease Property. We have seen some Walgreen's that are Net-Net (NN) but many can be found as Triple Net Leased Property.

Our favorite is the Triple Net Lease (NNN) which means that the Tenant is responsible for generally everything including structural repair. However every lease is different, and it is best to actually check any lease in the negotiation process of a purchase. Walgreen's generally fall into this category. Some other Triple Net Lease Property Investments might have a Publix, Target, CVS, Kohl's or Taco Bell on the site. McDonald's Properties and many banks such as Chase, BB & T and others could be a Triple Net Lease Property.

If you feel this is the right time to invest in a Net Lease Property especially a Triple Net Lease Property then contact us, HERE. Net Lease Properties can also assist you with your Commercial Real Estate Mortgage to purchase a new property.

Net Lease Properties for Commercial Real Estate Investing

This article is on the different Net Lease Property types for investing in Commercial Real Estate or if you are leasing a Commercial Property.
There are 3 names commonly used in the Commercial Real Estate industry for different sets of costs passed on to the tenant in a net lease.

Net Lease Properties Information

One type is the Single Net Lease transaction.
In a single net lease (sometimes shortened to Net or N), the lessee or tenant is responsible for paying property taxes as well as the base rent. Double Net Lease and triple-net leases (NNN Commercial Real Estate) are more common forms of net leases because all or the majority of the expenses are passed on the tenant.

Some points on the Double Net Lease.
In a double net lease (Net-Net or NN) the lessee or tenant is responsible for real estate taxes and building insurance. The lessor or landlord is responsible for any expenses incurred for structural repairs and common area maintenance. "Roof and structure" is sometimes calculated as a reserve, on these types of Net Lease Properties.

Finally our favorite of all the Net Lease Properties is the Triple Net Lease!
A triple net lease (Net-Net-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three 'Nets') on the property in addition to any normal fees that are expected under the agreement (rent, etc.). In such a lease, the tenant or lessee is responsible for all costs associated with the repair and maintenance of any common area of that particular Net Lease Property.

This form of lease is frequently used for freestanding buildings such as a Walgreen's, CVS, Burger King, Taco Bell or McDonald's.

Net Lease Property News From:
Commercial Real Estate
11420 U.S. Highway 1
North Palm Beach, FL 33408
(561) 707-7712‎

Are Banks ready to Lend on Commercial Real Estate?

Triple Net Lease Properties asks if this is some news on recovery? The Atlanta Fed notes that a recovery is under way, and shifting from government support to private sector activity.
However, Banks are now up against 900 Billion Dollars of bad or weak commercial paper, largely held by small or regional banks. Small Business does depend on small or regional banks for financing.
Some predictions are the looming Commercial Mortgage Notes will put many Property Owners underwater.

According to Alex Sanchez, president and CEO of the Florida Bankers Association, he said, banks here have been more than willing to lend during this economic downturn - but regulatory oversight has impeded that in many cases.
Banks are not happy with the regulatory environment that exists.

With heavy regulatory scrutiny Banks have been under, it prevents them from working with some of the customers they would really like to work with. But their lending process has to completed, and people have to qualify. Otherwise we end up like the Residential Mortgage sector with a huge Foreclosure rate.

For Net Lease Properties we suggest going for a Non-Recourse Loan if possible.

Commercial Real Estate
11420 U.S. Highway 1
North Palm Beach, FL 33408
(561) 707-7712‎

Homewood Suites by Hilton Opens in Orlando

ORLANDO, Florida - Homewood Suites by Hilton announced the opening of its newest property in Orlando. The huge, seven-story, 130-suite hotel is owned and managed by Kalson’s Hospitality, Inc.
The location of the Hotel is at 11428 Marbella Palm Court, in expanding Orlando. This hotel is conveniently situated just 17 miles away from the Orlando International Airport and one mile from Walt Disney World theme parks and Downtown Disney.
Homewood Suites by Hilton - Lake Buena Vista/Orlando will offer studio, one and two bedroom suites, and five handicap-accessible suites.
The hotel also offers a Caribbean-style swimming pool, sports court, spa, video game room. It also will be sporting 5,800 square feet of flexible meeting space, at the adjacent Hilton Garden Inn Conference Center.
Our staff at NNN Commercial Real Estate, enjoy staying at Hilton Garden Inn, especially in the Atlanta Perimeter.