Where Can I Find Triple Net Properties?

Other than l**P n*t, where can I find available commercial properties?

find a good commercial broker who specializes in retail properties....

I don't understand all these questions about NNN properties. Look, properties with prime locations are usually NNN, but you're going to pay top $ and you probably won't have any cash flow. However, I have seen average properties that are leased on a NNN basis because of the property type, or maybe the lessor just got lucky. It's not always that top quality tenant that pays NNN. So when you say NNN, are you really looking for a good tenant or an actual NNN lease? I don't see why a small investor would so actively seek properties with a 5% cap rate. Are we wanting to make money here?

Most people/entities that own these type properties either have very deep pockets and buy at a 5% cap rate, actually bought the land and made the improvements, or owned the land before the area exploded with development and got lucky. Of course, there are always exceptions for those of you about to pounce on me...

P.S. For those who have asked - there are no practically no good books on commercial real estate, much less good books on specifically NNN properties.

[ Edited by dburch on Date 07/11/2007 ]

I agree with dbirch. Most true triple net properties are A-1 location, condition and tenant quality. Hence, the 5 percent cap rate. I like to go a slighty different www.route.The commercial properties that a I own, the tenant remburses all expenses except RE taxes, insurance and major repairs. With the exception of major repairs, the other two items increase at a fairly predictable pace , and I try to offset the increases with 3-5 percent annual rent increases. This model might not work for everyone, but it seems to work for me. As far as books on commercial RE, I haven't found any that helped. Also, the average investor seems to be afraid of this area of investing, but I feel the risks are more than ouweighted by the rewards.

It's like larock said - most properties can be leased on a modified gross basis with the tenant responsible for everything except taxes, insurance and big repairs. Those are still good terms to me and you can buy at higher cap rates. If you're new to the commercial side then I don't recommend you agressively seek NNN properties if you want to make money. Of course, NNN properties offer stronger appreciation possibilities. As rents increase so do values. However, betting on appreciation is risky to me, especially in today's market.

[ Edited by dburch on Date 07/12/2007 ]

NNN is only referring to the structure of the leases. You can have multi-tenant properties that are basically set up as NNN with all expenses reimbursed by the tenants and get much better cap rates than your typical CVS/Walgreens selling at a 5% to 6% cap. These types of single tenants are basically for institutional investors or people paying all cash or a good bit of cash. The up side is they are usually 20 to 25 yr leases with decent increases every 5 years.

Okay,

I finally bought my first Triple Net Lease property. I only own the land. Yes it was expensive and the cap rate was 6%. Lease is 15 years with 2% rents each year and a 15 year option for the tenant to renew. The reason I bought is because there is no landlord maintenance, has lots of foot traffic with major anchor stores, but most of all it's brand new. I bought it directly from the developer who was able to pay me lease payments until the tenant could move in. The benefit of this deal is not the 6% monthly return, but the value of the underlying land. The value of the land has gone up 42% in the first 6 months of my ownership. When the 15 years is up, I will either sell the property or jack up the rents. This is the best financial move I've ever made. Shoot me an E-mail me if you have any questions about these types of investments. I"m hooked on real estate!!! **Please See My Profile**

John,

Sounds like you did quite well.

This was always such a bizarre thread to me. Guy sounds clueless and all the sudden he owns a NNN property that has appreciated a billion percent.

Dburch,

Why are you a hater? I asked a question and after a years time frame of research and looking it finally happened for me. Unfortunately this website doesn't have a lot of active participants on the forum so the advice here is a bit on the slow side. So what's your niche in commercial?

My niche is anything that is a good deal based on my investment criteria. I'm also a commercial appraiser. I'm not hating at all, I just said the thread seemed odd to me. I'm glad for your success and good luck to ya

Hunt around on google and the big commercial site. They will have pages full.

Also look at 1031 and TIC sites.