What They DON'T Tell You About Triple Net (NNN) Leases

Let's discuss the potential downsides of triple net leases in commercial real estate, because they're not all rainbows and butterflies. I'll highlight risks such as tenant financial troubles, long-term fixed rental rates, maintenance concerns, limited landlord control, and tax implications. Then, we'll discuss how to carefully weigh these downsides against the benefits to determine if a triple net lease structure is the right fit for your investment strategy.

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// ABOUT TYLER CAUBLE

Tyler is a Nashville native and the best-selling author of Open For Business: The Insider's Guide to Leasing Commercial Real Estate. He has experienced all sides of commercial real estate deals, including brokerage, management, investing, and development.

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The information provided in this video should not be construed or relied on as investment advice for any specific fact or circumstance. Its content was prepared by Tyler Cauble with its main office in Nashville, TN. This video is designed for entertainment and information purposes only. Viewing this video does not create a broker-client relationship with Tyler Cauble or any of its agents. You should not act or rely on any of the information contained herein without individual professional advice.

#commercialrealestate #realestateinvesting #cre #investing

[Danilyn_Livao]

This is such an insightful discussion!🙂 Triple net leases often seem ideal, but it’s important to understand the potential downsides, and you’ve done a great job highlighting key risks. Thanks for shedding light on these critical aspects of commercial real estate—super helpful! 👏📈

[Motoseaner]

Small business owner here. I liked your car wash segment. I'm thinking of building a car wash on property I own. Specifically an In bay automatic with zero employees. Can you do a segment on the pros and cons of going though the process of building a business on land you already own or may purchase? Specifically the tax advantages and disadvantages, and metrics to consider like cash on cash return. In other words when does it make sense to build and basically purchase an asset that cash flows?

[Easyservice-xq]

I am waiting for your next video when you will release it

[NickJuliano-WNRJ]

This channel’s a gem. Thanks! Already subscribed but liked and commenting to give you a bump.

Question: How would this work when there are multiple units but a new roof is needed? Does the affected tenant just do their best with patches, or can the owner or affected tenant commission a new roof and equally distribute the cost?

Thanks!

[patrickguido]

What are your thoughts on having a triple net lease with the rent being based on a percentage of sales? And to ensure the landlord is getting a good rent the percent rent would be over a base rent