The cost of Triple Net Lease (NNN) properties can vary widely depending on several factors, such as the location of the property, the quality and age of the building, the length and terms of the lease, and the creditworthiness of the tenant.
Generally, Triple Net Lease properties tend to be more expensive than traditional commercial properties, since they offer a lower level of landlord involvement and a more stable and predictable cash flow. However, prices can range from a few hundred thousand dollars for a small retail property in a less desirable area to tens of millions of dollars for large, high-quality properties leased to strong tenants in prime locations.
It’s important to note that when considering NNN properties, the focus is typically on the rental income generated by the property, rather than the property’s physical value. Therefore, investors will often consider the cap rate (capitalization rate) of the property, which is the net operating income divided by the purchase price, to determine its potential return on investment.