NNN Lease Explained




Tenant In Common NNN Lease

An increasing popular alternative to sole ownership NNN lease is an investment in a single large NNN lease commercial commercial investment property by multiple investment property investors, not as limited partners or as an entity, but as individual investment property investors. This form of ownership is known as fractional ownership or tenant in common.

While tenant in common commercial investment properties are available for virtually all commercial investment property types, NNN lease-tenant in common are particularly popular because of their predictable cash flow backed by national credit tenants. NNN Lease-tenant in common commercial investment properties can be either single tenant NNN lease or multi-tenant NNN lease commercial investment properties. Additionally, it is common for a tenant in common Sponsor to convert a multi-tenant commercial investment property into a NNN lease through a master lease structure where they lease the commercial investment property back from the investment property investors on a NNN lease basis.

Advantages of tenant in common-NNN lease commercial investment properties include:

1. Zero management headaches

2. Steady supply of tenant in common-NNN lease commercial investment properties available for investment at any given time

3. Invest in larger, higher-quality institutional commercial investment properties

4. Work with a licensed 1031 broker throughout the process

5. Variable minimum investment requirements


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