What to Look for in a Triple Net Property
The ideal property should:
- NOT COMPETE WITH AMAZON
- Perform well in a recession
- Perform well during a pandemic
- Be a public corporation
- Have an investment-grade credit rating
- Have guaranteed lease payments
- Not have any “rent holidays” or “out clauses” (weasel clauses) in the lease
- Provide the longest possible lease (15 years)
- Have multiple renewal options in the lease
- Have rent increases at each option period
- Have a population of 10,000+ people within a 5-mile radius
- Have a stable or expanding population
- Have a minimum of 3,000 cars per day passing the property
- Have a good number and diversity of employers in the area
- Offer a superior return compared to other asset classes
- Offer a superior return compared to other triple-net tenants
- Have a size and layout that will make it easy to re-tenant the property if necessary
