Lease term remaining is the number of years left on the current lease term, a key driver of NNN pricing and financing.
Remaining term is one of the clearest signals of risk in an NNN deal. A property with 15 years left offers a long runway of contracted rent, while one with 3 years left raises the question of whether the tenant will renew. Buyers typically see lower cap rates for longer terms, and lenders may limit loan terms to the remaining lease term. Options to renew do not guarantee the tenant will stay, so assess the property's value as if the tenant could leave.