5 Advantages of Good NNN Lease Agreement Properties For Tenants

If you are looking for a safe, solid, and profitable long-term investment, then definitely think about NNN-Leased property.

Photo by Cytonn Photography on Unsplash

The advantages of NNN properties are imminent and outshine those most other real estate investment options offers. NNN properties create an opportunity for investors to significantly increase their return on investments, mainly when you use the right strategy.

  1. Tenants Gain A Desirable Location For Their Business

Typically properties with triple net leases are located in accessible areas close to other popular businesses. Strategic locations can help a tenant gain traffic and exposure from customers who visit other companies in the vicinity. It’s important to note that nnn lease properties are usually in areas where businesses can benefit from customer pooling.

Potential customers come in the neighborhood sarching for other items but eventually visit your outlet and transact a business. The location of your business is one of the most crucial factors in determining the success of your business.

  1. Caps On Rent Rates Helps Keep The Rents Down and Predictable

NNN (triple net) properties offer tenants many advantages, not the least being constant inflation-adjusted rent increases. The leases quotes using a percentage rent clause that determines the rent increase annually. Hence, tenants can pay predictable amounts over time and budget more effectively for future rents.

Photo by Cytonn Photography on Unsplash

NNN lease properties allow tenants to make necessary improvements in their apartments without worrying about sudden rental increases. Tenants can get a new countertop without facing additional rent charges throughout their lease. Unencumbered by the expenses of operating and maintaining the real estate, landlords can keep their rents affordable

Many long-time tenants pay below-market rent for their apartments, which tends to be more stable than market rents on vacant apartments. In addition, some rules govern evictions and warranties of habitability and landlord responsibilities.

Photo by Maria Ziegler on Unsplash
  1. Long Terms Occupancy

Most triple net lease agreements are structured to offer long-term tenant occupancy of upwards of 20 years. Long-term occupancy is advantageous for tenants because it removes the risk of losing your space and consequently losing your customers to a new tenant. Securing your business space for a long time helps you develop a long-term plan, and hence you can be able to do proper forecasting for your business.

NNN lease long-term occupancy also allows companies to gain customer royalty for consistency in their business location. Doing your business in one place for a long time may also help you understand the customers’ culture and, therefore, adjust fast and efficiently to meet your customers’ changing tastes.

  1. Offers More Property Control To The Tenants
Photo by Sieuwert Otterloo on Unsplash

With a triple net lease, NNN lease property, the tenant assumes responsibility for the operations and upkeep of the business location. Hence, the tenant can maintain their business premises without involving the property owner. As such, the tenants have the upper hand in keeping the appearance of their property the way they want and in good condition.

Consequently, you can hire your handyman to do your maintenance work at your most convenient time without having to depend on a third party. Hence, NNN lease properties offer more flexibility on maintenance and the appearance of your business. However, it’s essential to avoid unnecessary maintenance costs near the end of your lease period. After the lease period, the property and all the improvements go back to the property owner/landlord.

  1. Lower Entry Price Point

Triple net leases may have a lower base rent charge because the tenant assumes more of the expenses for the property. However, with pre-determined rates to cover the inflation rate, your rent is likely to increase. Still, you will be able to plan your financial expenses since the rent charges may not increase abruptly with referring to the lease agreement.


A good NNN lease agreement should offer straightforward benefits, as above. However, it’s crucial to keep in mind that you should seek professional advice before committing to the NNN lease due to complexities that may be hard to crack. Sands Investment Group is a reliable partner who will help you secure good NNN lease terms for your business.


More Reading

Post navigation

Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *