NNN Lease Market News
NNN Industrial Investments One-Liners
Calkain Companies is a dedicated team of seasoned professionals that is committed to excellence in the sale of NNN industrial investments properties.
Don’t lose sight of the fundamentals:
• The length remaining on the lease term may not be as important as the location and the use of the property. An opportunity to renew or release could be a benefit to investors, especially if the underlying real estate meets the long term requirements of the tenant or use group.
• All things being equal, should the investments value of a property with a stable, high quality industrial tenant, who is operating with a short lease term, be overlooked or discounted? If the business model of the tenant shows creditable future growth and the site and location are critical to their operation, the investments has value beyond the initial lease term.
• Should the real estate be as equally important to the equation, as lease term and financial strength? All attributes of a NNN investments play a critical role in determining the true value if the asset and in some special cases, the value of the real estate may be as important as the strength of the tenant and the uniqueness of the location.
• The location, zoning and uniqueness of the property will always add to the real estate value. The tenant’s use of the real estate and their special requirements can make a case for a much higher value of the intrinsic real estate.
• Spending the time to quantify the real estate value with special consideration put on permitted use requirements and necessary equipment in place, can make or break a NNN deal even if the financial fundamentals say differently.
• Should savvy NNN industrial investors consider the real estate as just one factor of a NNN investments or the most critical component of the equation? In a NNN transaction, real estate having necessary site specific requirements to the Tenant’s business operation, it should disproportionately add value to unattractive real estate.
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