NNN Real Estate: What It Is and How It Works for Investors
When you hear NNN real estate, a commercial property lease where the tenant pays property taxes, insurance, and maintenance costs in addition to rent. Also known as triple net lease, it’s one of the most popular ways investors earn passive income without managing repairs or bills. Unlike regular rentals where you handle everything, NNN shifts those costs to the tenant—making your job simpler and your cash flow more predictable.
This model works best with long-term leases to big, stable businesses like pharmacies, banks, or national chains. Think Walgreens, Starbucks, or Dollar General. These tenants sign 10- to 25-year contracts, so your income doesn’t bounce around with market swings. But here’s the catch: you’re still responsible for the roof, the structure, and major systems. If the building needs a new HVAC or foundation work, that’s on you. The tenant pays the monthly bills, but not the big-ticket surprises. That’s why location and tenant credit matter more than anything else. A NNN lease in a dying strip mall with a failing business is a trap. One in a growing suburb with a Costco out front? That’s the gold standard.
Investors love NNN because it’s hands-off, but that doesn’t mean it’s easy. You need to know how to read a lease, understand property tax trends, and spot which tenants are truly reliable. It’s not just about rent amount—it’s about who’s paying it, for how long, and what happens if they leave. That’s why the posts below cover everything from how to calculate true returns, to what questions to ask before signing, to why some NNN deals look great on paper but fall apart in practice. You’ll find real examples from across the U.S., breakdowns of common mistakes, and tips on how to avoid getting stuck with a vacant building and a broken roof. Whether you’re new to commercial real estate or looking to diversify your portfolio, the guides here give you the clear, no-fluff facts you need to decide if NNN is right for you.
NNN Meaning in Real Estate: Triple Net Lease Explained for Investors
NNN in real estate means triple net lease—a popular way to invest in commercial property with fewer hassles. Learn how it works, its perks and risks, and why investors love NNN leases.
- July 8 2025
- Archer Hollings
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