NNN Lease property investment

1. What to look for in NNN lease property investment.
2. What cap rate to expect with good credit tenant property.
3. Does property value go down if lease time is short.
In Buying Property - Asked by SURJIT G. - Apr 23, 2010
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Answer(s)

Charles A.
Broker/Agent
Cerritos, CA

I would check if there is any "cap" clause on any of NNN reimbursement such as tenant can pay only upto certain amount (designed to protect tenant when property is transferred at a higher tax rate). I would say 8% Cap or better for A credit tenant would be a good buy but check the term of the lease, preferably 10+ year left as well as base rent is not too inflated compared to size of the property. The value can either go down or go up depending on market rate. Value will go up if current rent is below market rent but value will drop if current rent is higher than the rent.

Apr 23, 2010
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Gregory G.
Broker/Agent
San Francisco, CA

Surjit... please see the link to the following pdf for a full overview.
Greg
415-968-6065

May 2, 2010
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Jennifer D.
Broker/Agent
Danvers, MA

Greg you've put together a very nice and informative document there!
Brian Dapice
Keller Williams Commercial

May 7, 2010
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