“The triple-net lease offers a long-term lease with the guarantee of steady cash flow and practically no risk.”
                           —Institutional Investor

A triple net lease property (NNN) is similar to a long-term corporate bond in the form of a real estate lease. The tenant typically agrees to pay all costs associated with the property use and occupancy, including real estate taxes, insurance and maintenance. The tenant also has full operational control of the property.

NNN’s are typically purchased on a cap rate. A cap rate is essentially a yield which is determined by dividing the tenant’s annual rent by the purchase price. For example, if Walgreens is paying $350,000 annually and the purchase price is $5,645,161, the cap rate is 6.2% ($350,000/$5,645,161).