Exploring NNN Real Estate for Sale: Investment Opportunities in Triple Net Leases
If you’re seeking dependable passive income with minimal landlord duties, NNN real estate for sale offers real estate investors one of the most efficient investment vehicles in commercial real estate. Backed by long-term leases and national credit tenants, triple net lease (NNN) properties provide stable cash flow, simplified ownership, and recession-resistant potential without the hassles of property management.
In this guide, we’ll break down what NNN investments are, why investors seek them out, and how to evaluate the best NNN properties on the market.
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Single Net Lease Properties
Single net leases are the least common net lease type. With properties under this lease type, the lessees are responsible for paying property taxes. The rest of the necessary property expenses like insurance, utilities, and maintenance fall under the landlord’s responsibilities.
Double Net Lease Properties
Double net leases are particularly popular in commercial real estate. With this lease type, tenants pay property taxes and insurance premiums in addition to rent. Additionally, landlords cover maintenance costs. For large commercial properties, investors divide taxes and insurance costs based on the size of the leased space. Landlords often ask renters to forward their payments to them, guaranteeing that the former won’t incur extra fees caused by late payments.
Triple Net Lease Properties
Triple net leases are the most common net lease types in the market. Out of all net lease types, triple net leases — or NNN leases — absolves the most risk for landlords. With triple net lease properties, tenants pay for rent, taxes, insurance, and even structural maintenance.
Pros of Triple Net Lease Properties for Landlords
- Long-term occupancy: In most cases, new NNN leases last anywhere from ten to fifteen years. This duration is a massive advantage for owners because it removes the risk of income loss while waiting for new renters.
- Low-risk investment: Since lessees are responsible for property costs, NNN leases fall under the very low-risk category for investors.
- Steady income source: Unlike multifamily, triple net real estate investments provide investors with a steady revenue stream. Additionally, tenants will cover most unforeseen damages to the property.
- Control: Investors can add net lease properties like Dollar General and Sherwin Williams to their portfolios as conservative, low-risk strategies they can sell
Cons of Triple Net Lease Properties for Landlords
- Earning caps: Investors locked in long-term leases trade income security to the benefit of increasing rent even as property values increase in an area.
- Vacancy risks: Even in net lease properties, tenants may default which is why it is critical to have an investment-grade tenant with a corporate guarantee.
Why NNN Leases Are Popular with Investors
NNN properties are favored for their:
Passive income
Long-term lease stability (typically 10–20 years)
Corporate-backed tenants
Predictable financials
This makes them ideal for investors completing 1031 exchanges for their investment property, building a retirement portfolio, or seeking tax-efficient cash flow.
Key Investment Metrics to Know
A measure of return based on the property’s income and purchase price.
Example: A CVS generating $350,000 in annual rent and selling for $5,000,000 has a 7.0% cap rate. ($350,000 / $5,000,000)
What to Consider When Evaluating NNN Properties for Sale
Before purchasing NNN real estate, evaluate the following:
Tenant strength: Is the lease guaranteed by an investment-grade corporation?
Lease term: Longer is better—10+ years is preferred.
Escalations: Are there rent increases built into the lease?
True NNN structure: Ensure the lease is “absolute NNN” with no hidden landlord responsibilities.
Location and demographics: Strong traffic counts and affluent trade areas increase security and upside.
Exit strategy: Will the property hold its value when you’re ready to sell?
How to Finance NNN Investments
Most investors use Commercial Real Estate (CRE) loans for NNN purchases. Expect:
Down payment: 25–35%
Loan term: 5–10 years
Amortization: 25–30 years
Get prequalified before you start touring or submitting offers. Competitive markets move fast.
How Rising Interest Rates Affect NNN Real Estate
As interest rates rise, cap rates often follow, adjusting property valuations. However, many NNN retail properties have built-in rent escalations that help offset inflation and preserve yield. To protect yourself:
Lock in fixed-rate debt
Focus on long-term leases
Choose properties with strong, recession-resistant tenants
Common Types of NNN Properties for Sale
Popular categories of NNN real estate include:
Pharmacy: Walgreens, CVS
QSR/Fast Food: Starbucks, Taco Bell, Chick-fil-A
Medical/Dental: DaVita, Aspen Dental
Auto parts: O’Reilly, AutoZone, some Gas Stations
Gas & Convenience: 7-Eleven, Circle K
These are often located in high-traffic corridors, close to residential zones, and near major highways or intersections.
Are There Risks with NNN Investments?
Yes—but they’re manageable when you buy strategically. Key risks include:
Tenant vacancy: If a single-tenant occupant leaves, your income stops.
Limited appreciation: Long leases can limit short-term rental increases.
Performing full due diligence and working with a buyer’s broker helps minimize these risks.
Navigating the Market for NNN Real Estate for Sale
The best NNN investment opportunities are often secured before they hit public listing sites. Consider:
- Off-market deals
- Sale-leaseback opportunities
- Multi-tenant retail strips with blended cap rates
Work with professionals who have relationships with developers and national tenants to gain early access.
Final Thoughts: Is NNN Real Estate a Good Investment?
If you’re seeking passive income, long-term tenant security, and minimal landlord duties, triple net lease investments check all the boxes. Whether you’re a seasoned investor or completing your first 1031 exchange, NNN real estate for sale offers a reliable, scalable, and tax-efficient strategy.
At Triple Net Companies, we specialize in helping investors acquire NNN properties nationwide, including off-market opportunities and developer-direct deals.