How does a bad economy effect NNN property owners?

In Leasing Property - Asked by Malcolm H. - Mar 3, 2009
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Azi K.
Dulles, VA

In this economy landlords are more frequently paying taxes, insurance, and CAM fees.
That way, you can stand out among all the other choices when looking for tenants.

Mar 3, 2009
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robert o.
Andalusia, PA

The impact of the economy should not have any different effect on a NNN owner versus one who employs a gross lease.
With a gross lease you are building the cost of taxes insurance and maintenance into the "base" lease rate and passing through any increases to a tenant.
At the end of the day its semantics.
I have heard of some landlords who will provide a true gross lease and not pass through any increases, but it is silly to absorb that risk. Think of insurance rates after 911.

Mar 4, 2009
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