What Is A Single-Tenant Net-Leased Property?
A STNL Q&A CHEAT SHEET
Q: What is a single-tenant property?
A single-tenant property is a freestanding retail, office, medical, or industrial building that is leased and occupied by one tenant, user, or company.
Q: What is a net lease?
A net lease is a type of commercial lease between a tenant and property owner where, in addition to paying the rent, the tenant–and not the landlord–is responsible for paying the rent as well as some or all of the building’s operating expenses such as insurance, taxes, maintenance, repairs, and utilities, depending on the type of net lease agreement.
The three most common types of net leases are:
- Single Net Lease: Tenant pays Rent + Taxes
- Double Net Lease: Tenant pays Rent + Taxes + Insurance
- Triple Net Lease: Tenant pays Rent + Taxes + Insurance + Maintenance/Operating Expenses
Q: Which one gives me the most freedom?
The triple net lease affords the property owner the most freedom and flexibility.
Want to learn more? Watch our video here!
All real estate investments carry risks. Nothing in this post shall be construed as tax or investment advice. A buyer and their tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to your satisfaction the suitability of the property for your needs.
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