As winds of change in the economic cycle grow, investors increasingly seek safe harbor in NNN properties. NNN properties in their purest form are single tenant properties with credit-worthy tenants, long-term leases and no landlord responsibilities. Capitalization rates often range from 4% to 7%, providing investors stable returns over longer periods. The nature of NNN properties, their lease terms and tenant profiles provide added security for investors looking to ride out the storm of challenging economic conditions.
The real estate fundamentals of NNN properties provide the first line of security. NNN properties typically have high-traffic, high visibility locations which appeal to a broad range of prospective tenants. NNN properties often have stylized box buildings with regular site layouts and signage rights. These features help occupying businesses maintain viable operations through economic cycles and appeal to a multitude of tenants or buyers on the lease turn or disposal of the asset.