TRIPLE NET PROPERTIES JEREMY CYRIER
i, I’m Jeremy Cyrier from CreInvestEd. Are triple-net properties really a good deal? Triple- net
properties or NNN investments offer you a great opportunity to achieve stability and in- come
potential in a commercial real estate investment. In this video I am going to share with you some of
the pros and not-so-popular cons of this dynamic investment type. The triple- net industry is a $25 billion
industry.
In 2011 alone, triple-net sales accounted for nearly 20 percent of all commercial real estate
investment deals. In fact, 2011 was a record year for triple-net investments. The reason for that was a lot of
investors were craving the stability and income durability that triple-net investments offered in relation to the
multi-tenant commercial real estate market where there was still a lot of guessing as to which direction values
were headed.
Triple-net, what that means is that the tenant is responsible for paying the taxes, insurance and maintenance
for the property. Leases are typically long-term, they tend to range from 10-25 years, and the tenant is typically
credit rated. That could be AAA to CCC. Credit ratings are offered by rating agencies such as Moody’s
and Standard & Poor. The pros for triple-net investments are that you can achieve convenience and perceive