4 valuable tips to find NNN properties on sale
Commercial real estate comes with big benefits and a big fat income, especially if you’re looking at it as a form of investment. And some of the most beneficial pieces of commercial real estate include the triple net (NNN) properties that can be leased. So, if you’re looking to invest or purchase NNN properties, here are a few tips that’ll help you make the right purchase decision.
What is a NNN lease?
It a lease agreement in which tenants of a certain property take complete responsibility of all the operating expenses on top of the rent that they are paying the landlord. For any commercial property, the operating expenses can be divided into three parts: tax, insurance, and maintenance.
If a tenant takes on only one of these expenses, it is considered a single net lease. If they take on two of the operational expenses, it is then a double net lease. If they take on three, it’s a triple net lease.
Generally, NNN leases are taken up by office buildings, industrial areas, malls, restaurants, and even pharmacies. NNN properties are quite beneficial from an ownership viewpoint as they can protect the owner from incurring unexpected expenses and make for some steady and passive income. So, finding NNN properties on sale is always a good move.
How do I find good NNN properties on sale?
These tips will help you make the right moves
- Thoroughly check online for listings
The Internet is truly humongous, but there are a few really good sites that actually help you filter our NNN properties. Loopnet and Costar Exchange are some of the best-known ones and pretty much let any owner post their property listings to their sites. - Don’t forget to check principal listings
The best way to check for commercial listings of real estate is to check all relevant websites for principals, irrespective of whether they are owners or developers. But this may actually require you to visit each of these sites on your own and do a whole lot of research, which will give you access to vast inventory. - Get a professional broker
Hiring a professional commercial real estate broker may seem a little steep in the pockets, but it will yield great results. They will be doing a majority of the work and have insider access to a whole lot of listings that you might not see online or have access to. They will also be able to search for a perfect one that fits our specific needs and criteria. While the commission may seem steep, the resultant income will ensure that it is totally worth it. - Check current and future rent analysis
Before purchasing any commercial property, you need to do a good rent analysis. This will help you identify it the real estate is an asset. The location and the market also need to be scoped out to check if the property will continue to be an asset even after the current tenant leaves.
