3 Advantages of Triple Net Lease Properties
It makes sense to feel slightly confused by the various commercial leasing options available. That being said, many are realizing the benefits of a triple net lease. To meet the requirements for this type of lease, investors will need to have a net worth of at least $1 million in addition to being accredited. Meeting these requirements allows you to begin able to utilize beneficial triple net leases. With that in mind, here are three triple net property advantages.
- Fewer Management Concerns
As a landlord, it’s understandable that you have many duties to typically tend to. Statistics gathered from 2015 found that investments in commercial real estate throughout the United States increased by an astounding 85%. If you’re in a situation in which you’re dealing with a growing number of investments, you don’t want to spread yourself too thin. You’ll find that a triple net lease can be extremely beneficial, especially while managing properties with only one tenant. With the tenant paying the three major net payments, this tends to make matters much easier than normal for a landlord.
- Less Worrying About Vacancies
Landlords want to have tenants in their properties at all time in order to avoid vacancies. After all, it’s difficult for a landlord to obtain revenue in buildings without tenants. With that in mind, you’ll want to consider the advantageous spans of many triple net lease contracts. Many triple net leases last for 10 years while others can span up to 25 years. This allows a landlord to have stable tenants without worrying about long periods of dealing with empty buildings.
- Increased Choosing Power for Tenants
It’s true that there are several triple net property advantages of landlords. However, there are also benefits for a tenant to consider in regards to this type of lease. With that in mind, one major benefit of a triple net lease is that tenants are able to have an increased amount of control. For example, imagine that there is some type of pest problem in your building. Under a triple net lease, a tenant can choose who to call to get rid of these pests.
In conclusion, there are several triple net property advantages to consider. It’s understandable to want to expand your portfolio of commercial property. Between 2012 to 2017, the commercial real estate industry experienced an annual growth rate of 3.9%. If you’re wanting to have a professional in your corner while growing your list of properties, it’s wise to have a net lease advisor on your side. Whether you’re a landlord or tenant, triple net lease properties are extremely advantageous for both parties.