A lease term (primary term) is the initial, non-cancelable period of the lease agreement, commonly 10 to 25 years for NNN properties. Remaining lease term is a major driver of both valuation and financing terms.
Primary term refers to the original fixed period before any renewal options. Investors generally prefer a longer primary term because it provides stable income and may support better loan terms and a stronger resale price. The term is measured from rent commencement, which may differ from the lease signing date. A 20-year primary term with options is not the same as a lease with a short remaining term, so look at both the original and the remaining term.