What is a NNN Lease? What is a NNN Lease? What is NNN in Renting Retail Space? What Does NNN Mean in Office and Industrial Spaces? How do you Evaluate a NNN Lease? Could a Sale-Leaseback Be the Right Move for Your Portfolio? Interested in learning more about NNN sale-leaseback investments or triple-net lease deals? The experts at R.O.I. Properties have your answers. A triple-net lease deal (a.k.a., NNN) is a lease agreement in which the tenant is responsible for all expenses, including rent, real estate taxes, insurance, and maintenance. These types of deals are increasingly being sought out by investors who are 1031 investors and/or those who are seeking low management. A subset of triple net-lease deals is the sale-leaseback, which gives a commercial real property owner the ability to convert equity into liquid capital. In this type of transaction, the seller relinquishes ownership rights to an investor and then leases back the property when escrow closes. For the seller, the influx of cash from a sale-leaseback can be used to reduce debt, improve debt-to-equity, or fund future expansion-or even to prepare for a business sale or retirement-while maintaining control of operations. For the investor, it creates a transaction that provides stable and relatively uncomplicated income. What is NNN in Renting Retail Space? The use of NNN retail started with large national brands, both franchises and corporate-owned stores. Typical NNN deal would be Walgreens, CVS, KFC, Taco Bell, Starbucks, etc. A developer may undertake a build-to-suit for this tenant, with a long-term lease in place upon occupancy. Then, the developer may retain ownership for a bit, then spin it off to investors with the long-term lease in place. Subsequently, there could be several generations of investors who sell and buy with the national (or regional or local) tenant remaining in place over many years.