Triple Net (NNN) Lease Investment Property
A triple net lease investment properties are investments where the real estate investor owns investment real estate (land and building) and leases the real property to a single tenant for an initial 15 to 25 year lease term with the opportunity for rent increases over time as a hedge against inflation.
The tenant agrees to lease and occupy the real property, operate their business on the premises, pay not only the lease rent but all of the property's operating expenses, including property taxes, maintenance, and insurance. This type of investment real estate is considered a passive investment. You collect the monthly net lease payments and don't have to worry about property management headaches.
Triple net lease commercial tenants are generally national credit quality tenants and have a vested business interest in seeing that a location is well maintained and attractive to customers. As a result, there is an economic incentive to enhance the real estate investor's property over time.