Schaumburg and Chicagoland: Tenant Representation & Office and Commercial Space for Sale and Lease

Investors seeking a more stable platform for their money might want to consider the Single Tenant Net Leased arena.  This billion-dollar market consists of a broad range of investments from A+ credit, national retailers and industrial companies to lower rated lesser known tenants.  Tenants like Walgreens, CVS, FedEx, AT&T and McDonalds are seeking long term leases where they can project their expenses for years ahead.  The investor/owner holds title to the property and in return, the tenant accepts 100% of the responsibility of tax and operating expenses for the building; all the investor has to do is collect the rents. A well researched property can be a great passive investment with a predictable cash flow and a safer, more controlled way to place your money.

The key to this market is risk tolerance.  The highly rated credit tenants will acquire a premium cap rate due to their stable financial position.  However, an investor who is more open-minded to risk can find returns as high as 10-15%.

Single Tenant Net Leased properties are also a great way to place 1031 exchange money keeping the tax burden on resale under control while creating a cash flow.  It is best to consult with your tax advisor regarding the benefits of Single Tenant Net Leased properties and 1031 Exchange transactions.

Common acquisition criteria are:

·         Long-term leases with investment grade and other credit-worthy tenants

·         NNN (preferred) or NN expenses; whereby the tenant is responsible for most (or all) of the property’s operating and capital expenditures during the lease term

·         Well-located, freestanding single-tenant buildings

·         Power centers and lifestyle centers

·         Properties offered free and clear of existing debt are preferred; however, properties with existing debt will be considered

·         Minimum deal size is $3 million (no maximum)

·         Location: United States

If you are interested in finding out more about Single Tenant Net Leased investments, feel free to contact us.