Risks Associated with a Triple Net Property

  • The tenant competes with Amazon
  • The tenant doesn’t perform well in a recession or pandemic
  • The guarantor isn’t financially strong enough to honor the lease
  • The lease is guaranteed at the unit, not the corporate level
  • The guarantor doesn’t have an investment-grade credit rating 
  • The tenant has “rent holidays” or “out clauses” (weasel clauses)
  • A short length of the lease
  • There are no rent bumps during the initial term
  • There are no rent increases at each option period
  • The population within the properties service area isn’t sufficient
  • The population isn’t stable or expanding
  • There aren’t enough vehicles per day passing the store
  • The property doesn’t offer a superior net return compared to other options
  • The size and layout makes the store difficult to re-tenant the property if necessary
To find out more, or get started

You have Successfully Subscribed!