This association facilities on a property leased to a single occupant beneath a triple internet (NNN) lease settlement. The tenant assumes accountability for property taxes, insurance coverage, and upkeep prices along with lease. For instance, a big company would possibly lease a complete workplace constructing from an actual property funding belief (REIT) beneath these phrases, managing all operational bills immediately.
Its significance stems from predictable earnings streams for the owner and operational management for the tenant. Traditionally, this construction has been favored by entities searching for long-term stability in property funding and people requiring substantial autonomy over their leased areas. Advantages embody minimized landlord involvement in day-to-day operations and a hedge in opposition to rising working prices for the tenant.
