Commercial property owners need to seek out renters that are going to help them receive the best possible return on their investment. In some cases a property is valuable enough that a company may be willing to pay what is known as a “Triple Net” lease – a lease where the lessee pays every expense associated with the property, including insurance, structural repair, and more.
Triple net is a common tool used by properties that are renting to qualified single renters, and advantageous because:
- Hands Off – Once the lease is in place, the property owner can be completely hands off of all expenses. They do not have to pay for any problems, or monitor anything other than the checks that the lessee sends in.
- Low Risk – Triple net leases are usually only given to those that can prove they’ll be able to cover the costs of every expense that may arise. In practice, nearly all triple net leases are low risk for the property owner.
- Long Term – Finally, these leases are often signed for years at a time – sometimes even decades. For the property owner that needs to be certain that they will be able to cover the costs of their rental property, this can be incredible advantageous.
It’s for all of these reasons that triple net is such a highly sought after style of lease for commercial properties. Though they generally only apply to single occupant properties and the qualifications to receive them are tough, they are the types of leases that most commercial property owners dream about.
What is Triple Net’s Value to the Lessee?
Of course, usually when one party wins, another loses. Lessee’s would often generally prefer not to get into a triple net lease because it could mean more expenses. But many business owners are happy to accept these leases because they usually come with:
- Decreased rent.
- Great locations.
- Fewer roadblocks against upgrades.
In addition, a business that is very likely to make a decent income can take on the risks of caring for the property knowing that they have what they need to be a profitable company, and so a triple net lease then works in their favor because of the security and convenience of acquiring that property.
These types of leases play an important role in the commercial marketplace. If you already have a triple net lease and are looking to receive the cash from that lease in a lump sum, make sure you sign up with CRE Lender today. We’re experts at helping you acquire triple net lease loans that allow you to be completely hands off of your commercial property.
Sign up with CRE Lender now to learn more.
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