NNN Leased McDonald's

NNN Lease Market News

Calkain Companies Featured Listing (NNN) Lease McDonald's

Absolute NNN 20 Year Corporate McDonald's with 10% rent bumps every 5 years Zero Landlord Obligations. McDonald's Corporation operates over 31,300 restaurants in 118 countries. McDonald’s (S&P: A, NYSE: MCD) Triple Net (NNN) originally meant net of taxes, net of insurance, and net of maintenance. According to the terms of an absolute NNN, the tenant is responsible for all property operating expenses, including insurance, taxes and internal and external maintenance.

NNN properties offer the benefit of little or no management responsibilities, as the tenant pays for most, if not all, of the expenses depending on the terms of the lease. The investor receives the rent with little to no other involvement. With an absolute triple net lease, the tenant is responsible for all expenses, making this a true passive investment for the owner.

LEASE SUMMARY

Total NOI $136,000*

Tenants McDonald's & Marathon Petroleum

Guarantee Corporate

Lease Commencement March 2008

MCDONALD'S

NOI $65,000*

Rentable Square Feet 2,726 +/- sf

Lease Type NNN

Lease Term 10 years

Increases Percentage Rent & 10% increase in base rent beginning with the 2nd renewal option

Options Automatic Six (6), five (5) year

 Includes percentage rent MARATHON PETROLEUM

NOI $71,000

Rentable Square Feet 3,040 +/- sf

Lease Type NNN

Lease Term 15 years

Increases 10% every 5 years

Options Automatic Five (5), five (5) year

 HIGHLIGHTS

•Rent-to-Sales ratio of approximately 3%, growing sales year over year

•Corporate Backed Leases by McDonald's and Harper Oil

•15-year Accelerated Depreciation

•Only McDonald's within 20 mile radius Multiple Locations Nationwide

http://www.calkain.com/

Government Cuts Clip Office Market

NNN Lease Market News

Smaller government means less demand for office space, and that is acting as a drag on the recovery of the commercial-real-estate market.
In Washington and elsewhere, government leasing has helped prop up demand in tough times. But now cash-strapped governments are moving to cut back on office space, even as commercial real estate struggles to recover.
After the financial crisis first hit, buildings with government tenants were a safer bet. Washington emerged as the healthiest office market in the country, with rents falling much less than other cities.
Rents have been rising in some prime markets since the depths of the downturn. In Washington's Georgetown market, effective rents were up 2.2% in 2010, according to Reis. In Midtown Manhattan, rents rose 0.2% during the year.
But in many markets rents actually fell last year, with net effective rents down 1.5% nationally, according to Reis. If government agencies contract without the private sector expanding more, downward pressure will continue, some predict.
http://online.wsj.com/