Triple Net Explained
Many real estate investors are choosing to engage in single, larger
triple net commercial
commercial real estate investments instead of a sole ownership triple net. This form of ownership is known as a
tenants in common investment.
Triple Net-tenants in commons are particularly popular because of their predictable cash flow backed by national credit tenants. Moreover, it is common for a
tenants in common sponsor to convert a multi-tenant
commercial real estate into a
triple net through a master lease structure where they lease the
commercial real estate back from the real estate investors on a
triple net basis.
Consider the Advantages of
tenants in common triple net commercial real estate :
1. Freedom from Management: tenants in common-
triple net commercial real estate are managed by National
commercial real estate companies on the real estate investor’s behalf. With no more
commercial real estate to manage, you have more leisure time to relax or pursue other interests.
2. Ready Availability: There is usually a steady supply of tenants in common-
triple net replacement
commercial real estate for purchase.
3. Own Higher Quality
commercial real estate : exchangers can invest in larger, higher-quality institutional
commercial real estate than they were able to invest in as individuals.
4. Assisted exchange Process: You do not have to do the legwork to find the
commercial real estate that you want to buy.
5. Flexible Investment Size: Variable minimum investment requirements help real estate investors match
commercial real estate with their equity and/or debt needs.
6. Diversification. Proceeds may be split among several
tenants in common triple net commercial real estate.
7. Non-Recourse Debt: Pre-arranged non-recourse financing limits real estate investor’s liability.