The structure of a triple-net lease looks simple on paper: the tenant absorbs operating costs, the owner collects base rent. The decisions hiding underneath that simplicity are what this series takes apart, one question at a time.
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The NNN Decision, in Sequence
The NNN structure is not a passive default. It is a series of compounding decisions, each of which shapes the risk-return profile of the final position: lease structure first, then tenant credit and concentration, then asset class. Each layer interacts with the others. A long-term lease with a weak tenant is not a stable income stream, and a creditworthy tenant in a structurally declining retail format is not a durable asset.
Each question in the sequence gets its own short treatment:
- What a triple-net lease actually transfers to the tenant, and the capital-expense and escalation exposure that stays with the owner
- How to evaluate tenant credit, concentration risk, and the dark-store record in single-tenant NNN properties
- Which asset classes actually benefit from NNN cost passthrough, from logistics to medical outpatient to self-storage
Accredited investors map their situation against current NNN and DST offerings through the partnered broker-dealer's intake process, confirm accreditation status to proceed with offering-level due diligence.