May 31, 2011
Posted by root in Triple Net Lease | Comments Off on Risks of Triple Net Lease Properties
Risks of Triple Net Lease Properties
- General Real Estate Risk – Triple net properties are not immune to risks associated with real estate investment including potential loss of value
- Tenant Default or Bankruptcy – A default or bankruptcy by a tenant may affect cash flow and the value of a triple net property
- Vacancy – A single tenant triple net lease property is either 100% occupied or 100% vacant thus making credit quality and lease term particularly important