Topic: Commercial Real Estate

SAFE INVESTMENTS

SAFE INVESTMENTS IN COMMERCIAL REAL ESTATE: TRIPLE NET PROPERTIES!

A net leased property is typically a free standing building with a credit worthy tenant such as CVS, Walgreens, Starbucks, McDonalds, Bank of America, Dollar General, AutoZone etc. who are on a long term corporate lease of usually 10-20 years plus options to extend the lease out for up to another 10-50 years. Because of a desire to maintain liquidity, most of these companies do not actually buy the buildings they occupy, rather they lease them and in doing so, sign a corporate guarantee insuring that the tenant cannot just walk away from a lease if they no longer like the property. On top of that, the tenant is responsible for often complete and total maintenance and care for the property, the building and everything associated with it.