The NNN effect or The Triple Net effect


WHAT IS NNN (Triple Net) and what does that mean to an investor/owner of real estate?


The term NNN or ‘triple net’ as it is known represents an investment property that has a commitment of a long term ( usually ) lease from the tenant, with the tenant paying the expenses of the asset property, in addition to the agreed upon rental rate.

The lease agreement designates the lessee (the tenant) as being solely responsible for all of the costs relating to the asset being leased in addition to the rent fee applied under the lease. The structure of this type of lease requires the lessee to pay for net real estate taxes on the leased asset, net building insurance and net common area maintenance. The lessee has to pay the net amount of three types of costs, which how this term got its name.

For example, if a property owner leases out a building to a business using a triple net lease, the tenant will be responsible for paying the building’s property taxes, building insurance and the cost of any maintenance or repairs the building may require during the term of the lease.The tenant is covering these costs (which would otherwise be the responsibility of the property owner).


NNN leases have become very desirable for investors portfolio.  They are usually long term leases with long term tenants, thus giving the investor potential security of regular income

of regular income from the investment property.

These leases may be in the industrial, retail, or office / office medical segments of the marketplace.

Another reason for the desirability of this type of asset that gives the owner /landlord ‘hands free’ management of the property, as the tenant is responsible for all costs and often all repairs.

The stock market can fluctuate, while the long-term leases, coupled with the tenant’s responsibility for expenses may make this type investment beneficial to a portfolio, when suitable.

An individuals portfolio.


The Triple Net properties are often desired and used for the 1031 tax deferred exchange process.


*See Resource Guide on this website



“Traditionally there have been 3 classes of assets one could hold… stocks, bonds and cash. “Today, with the prevalence of new real estate investment alternatives, real estate is often considered the ‘fourth asset class of an investment portfolio’. Real estate may have different forms of ownership and investment product types."

Great Point Capital (GPC) LLC doesn't accept buy, sell, or cancel orders by e-mail, or any instructions by e-mail that would require your signature. information contained in this communication is not considered an official record of your account and does not supersede normal trade confirmations or statements. Any information provided has been prepared from sources believed to be reliable but is not guaranteed, does not represent all available data necessary for making investment decisions and is for informational purposes only. This message is intended only for residents of the states in which the sender is registered as applicable to the content.

Securities offered through Great Point Capital, LLC, member FINRA/SIPC. Advisory services are offered through Great Point Advisors, LLC, an SEC registered investment advisor.
Norma Nisbet is aRegistered Representative with GPC LLC. 200 W. Jackson, Ste.1000, Chicago, Il 60606. Vista Properties and Investments LLC is independent of GPC LLC.