Frequently asked questions
Everything investors ask us about triple net.
Get answers to frequently asked questions about investing in triple net (NNN) properties. Don’t see your question here? Contact us for more information.
Start here
The three questions every NNN investor asks first.
A lease where the tenant pays three main expense categories in addition to rent, giving landlords predictable income with minimal operational responsibility.
Property taxes
Building insurance
Maintenance
What is a cap rate and why does it matter?
The ratio of net operating income to purchase price — the fastest way to compare return potential across properties.
Example
$120,000 NOI ÷ $2,000,000 price
6.0% cap rate
Yes — they’re among the most popular replacement assets thanks to their passive nature, long-term leases, and income stability.
45
days to identify
180
days to close
Browse by topic
Find your answer.
NNN basics
Lease types, property types, and how NNN fits among other CRE.
What is a triple net lease? What does NNN mean in real estate? What does the landlord pay in a triple net lease? Absolute NNN vs. modified NNN leases?The tenant assumes nearly all the responsibilities typically handled by the landlord. The investor collects a base rent, while the tenant covers operating costs.
Triple net investments offer a rare combination of predictability, passive income, and long-term stability.
A bondable NNN lease is the most absolute form of a triple net lease.
The investor owns the land and leases it to a tenant who builds and owns the building. Most ground leases are NNN or bondable in nature.
The level of landlord responsibility defines whether an NNN investment is passive or active.
Cap rates & valuation
How NNN properties are priced, valued, and compared.
What is a good cap rate for NNN properties?Divide the net operating income (NOI) by the purchase price of the property.
Valuation is based on the net operating income (NOI) and prevailing cap rate for the asset class.
Pricing is based on income stream and risk level.
Location is one of the most important factors influencing an NNN property’s value, cap rate, and liquidity.
“Investment-grade” in NNN real estate refers to the quality of the tenant and lease.
Tenants & lease terms
Who signs NNN leases, and what the lease actually commits them to.
What is a credit tenant lease?Most often national or regional corporate tenants that prefer long-term occupancy with control over the property.
NNN lease terms are often long-term, stable, and structured for passive ownership.
A tenant’s credit rating reflects the financial strength and payment reliability of the company leasing the property.
Typically as base rent with scheduled escalations over time.
In most NNN leases the tenant is responsible, but it’s critical to read the lease to determine exactly who handles what.
Tenant default is rare with investment-grade tenants but should be planned for.
Buying & due diligence
From sourcing the deal to closing it with the right team.
What is an offering memorandum in commercial real estate? Why does an offering memorandum say it can’t be relied on? What is an estoppel certificate? What due diligence is required before buying? What is the role of a buyer’s broker? How can I source off-market NNN properties?Critical questions can reveal issues or confirm strengths of an NNN property.
A business sells its real estate and immediately leases it back from the buyer.
A team of professionals ensures a smooth NNN acquisition with reduced risk.
1031, tax & financing
Exchanges, depreciation, loans, and ownership structures.
Can I 1031 exchange into a NNN property? What are the 1031 exchange identification rules? What is the 45-day rule in a 1031 exchange (and the 180-day rule)? What happens if a 1031 exchange fails?Triple net properties offer several favorable tax advantages, especially for high-net-worth investors.
Depreciation lets investors reduce taxable income by writing down the property’s structure (not land) over time.
NNN investors have several financing choices based on property type, tenant credit, and lease term.
Yes, investors can use self-directed IRAs and trusts to purchase triple net properties.
Risk, strategy & market
What can go wrong, and how to plan your hold and exit.
While triple net properties are often low-risk, there are a few potential downsides.
Common mistakes can erode returns or increase risk in NNN investing.
Diversification in NNN investing helps reduce risk and stabilize returns over time.
Knowing your exit options allows for flexibility in your investment horizon.
Inflation reduces the purchasing power of future income — and your lease structure determines how protected you are.
Don’t see your question?
Ask an advisor directly.
Choosing Triple Net Companies means choosing a partner with decades of exclusive buyer representation, a proven track record, and access to the best properties and financing options.
Triple Net Companies · 1-800-367-7283