Triple Net (NNN) Investment Properties – Inland Empire
Many investors like triple net (NNN) property because the tenant covers most of the property's operating costs. I'm Javier A. Brown, a commercial real estate agent with MGR Real Estate in Ontario with more than 20 years in the Inland Empire. I help investors buy and sell NNN retail and industrial properties, including warehouses and distribution buildings.
What Is a Triple Net Lease?
In a NNN lease, the tenant pays base rent plus the property's taxes, insurance, and maintenance. The details vary from lease to lease, though. Some leases leave the roof, structure, or parking lot with the landlord, so every lease needs a careful review.
Single-Tenant and Multi-Tenant Properties
- Single-tenant retail or industrial: one tenant, such as a retailer or a company in a warehouse. Management is simpler, but the property's income depends on that one tenant.
- Multi-tenant retail centers and industrial parks: several tenants share the property and its costs. Income is spread out, but there is more leasing and management involved.
How Cap Rates and Tenant Credit Work
A cap rate is a property's net operating income divided by its price. In general, properties with stronger tenants, longer leases, and better locations sell at lower cap rates, and riskier properties sell at higher ones. Tenant credit is how financially strong the tenant, or the company guaranteeing the lease, is. A national company with strong finances is usually seen as lower risk than a new local business.
Why Some Investors Look at Higher-Cap-Rate Deals
Higher cap rates can mean more income for the price, which is why some investors look for them. That extra income usually comes with more risk, so a higher cap rate deserves closer review, not less.
Risks to Weigh
- Tenant credit: if the tenant struggles or leaves, the income can stop.
- Lease term: a short remaining term means you may face a vacancy or a new lease negotiation sooner.
- Location: traffic, access, and demand affect how easily the space could be leased again.
How It Works
- Set your goals. Income, budget, risk level, and timing, including any 1031 exchange deadlines.
- Search. I find retail and industrial NNN options in the Inland Empire.
- Review. We look at the lease, the tenant, the location, and the numbers.
- Negotiate and close. I negotiate the purchase and work with your escrow, lender, and advisors.
Frequently Asked Questions
What is a NNN lease?
In a triple net lease, the tenant pays base rent plus the property's taxes, insurance, and maintenance. The details vary, so every lease should be read carefully.
Who pays for the roof and structure?
It depends on the lease. Some leases make the tenant responsible, while others leave the roof, structure, or parking lot with the landlord.
What matters most when buying NNN property?
The tenant's strength, the time left on the lease, rent increases, landlord duties, and the location if the tenant ever leaves.
Can I use NNN property in a 1031 exchange?
Yes. NNN property is a common choice for 1031 exchanges. Work with your tax advisor and a qualified intermediary on the exchange itself.
Do you help with industrial NNN as well as retail?
Yes. I help investors with NNN retail and industrial property, including warehouses and distribution buildings.
Talk With Me About NNN Investments
Call (909) 641-0582 or email jbrown@mgrrealestate.com. Office: (909) 981-4466 ext. 266.
Javier A. Brown | MGR Real Estate | 3800 E. Concours St., Suite 350, Ontario, CA 91764 | DRE #01755491 | Se habla español