True absolute NNN — not "NNN-ish." Every lease we present is reviewed by a licensed California attorney to confirm zero landlord obligations before you commit. Off-market inventory nationwide for 1031 exchange buyers and direct investors.
Not all NNN leases are created equal. The table below shows what each lease type actually requires of you as the landlord.
| Landlord Obligation | Absolute NNN | Modified NNN | Double Net (NN) |
|---|---|---|---|
| Landlord pays property taxes | ✗ Yes | ✓ No | ✓ No |
| Landlord pays building insurance | ✗ Yes | ✓ No | ✗ Yes |
| Landlord pays maintenance & repairs | ✗ Yes | Partial | ✗ Yes |
| Landlord pays roof & structure | ✗ Yes | Often yes | ✗ Yes |
| Landlord manages the property | ✗ Yes | Sometimes | ✗ Yes |
| Truly passive income | ✓ No | ✗ Yes | ✗ Yes |
* Many leases labeled "NNN" in marketing materials contain hidden landlord obligations. Attorney lease review confirms true absolute status before purchase.
Investors trading out of apartments, industrial, or multifamily choose absolute NNN for one reason: never managing a property again.
In an absolute NNN lease, every property expense — taxes, insurance, maintenance, repairs, roof, and structure — is the tenant's responsibility. You own the asset. You collect the check. Period.
1031 exchange buyers trading out of apartments, office buildings, or retail centers choose absolute NNN because it eliminates the management burden that made them sell in the first place. Pure passive income from Fortune 500 tenants.
Many leases are marketed as 'NNN' but contain hidden landlord obligations buried in exhibits and riders. Every lease we present is reviewed clause-by-clause — catching what generalist brokers miss.
Absolute NNN tenants are almost exclusively investment-grade corporations — Dollar General, McDonald's, AutoZone, 7-Eleven. Your rent is guaranteed by a Fortune 500 balance sheet, not an individual franchisee.
Absolute NNN leases run 15–25 years with built-in rent escalations. The combination of corporate credit and no landlord obligations makes this the most predictable passive income vehicle in commercial real estate.
We begin sourcing your absolute NNN replacement property before your relinquished property closes. By the time your 45-day clock starts, you already have a matched property and a confirmed lease structure.
Investment-grade corporations with standardized absolute NNN lease structures available off-market nationwide.
Credit
BBB (S&P)
Term
15 yr
Cap Rate
5.25–6.25%
19,000+ locations. Standardized absolute NNN leases on all new construction. Most prolific absolute NNN category.
Credit
BBB+ (S&P)
Term
20 yr
Cap Rate
4.25–5.00%
Corporate parent guarantees all obligations. Ground leases also available — you own land, McDonald's owns building.
Credit
BBB (S&P)
Term
15–20 yr
Cap Rate
5.00–5.75%
E-commerce-resistant. Recession-resilient. Clean absolute NNN structure with no landlord obligations.
Credit
A– (S&P)
Term
15–20 yr
Cap Rate
4.50–5.25%
A-rated credit. Among the strongest investment-grade tenants available in absolute NNN format.
Credit
BBB+ (S&P)
Term
10–15 yr
Cap Rate
4.50–5.25%
Drive-through locations typically structure as absolute NNN. End-cap and inline locations may include minor landlord responsibilities — attorney review is essential.
Credit
BB+ (S&P)
Term
20–25 yr
Cap Rate
5.25–6.50%
Long primary lease terms. Essential pharmacy retail. Absolute NNN structure with zero landlord responsibilities.
Eli Satra Shans is a California State Bar licensed attorney and a real estate broker licensed in California and Alabama. No other NNN advisory firm brings this combination of credentials to your transaction.
California State Bar
Licensed Attorney
CA & AL Broker
Licensed in Two States
450+ Closings
$900M+ in NNN Transactions
Everything 1031 exchange buyers and direct investors ask before purchasing an absolute NNN property.
An absolute NNN (triple net) property is a commercial investment where the tenant is responsible for 100% of property expenses — including property taxes, building insurance, all maintenance, roof repairs, and structural costs. The landlord's only obligation is owning the property and depositing the monthly rent check. This is the most passive form of commercial real estate ownership available.
A standard NNN lease passes taxes, insurance, and maintenance to the tenant but may still require the landlord to fund roof repairs, structural maintenance, or parking lot resurfacing. An absolute NNN lease transfers even these capital expenditures to the tenant entirely. Some leases are labeled 'NNN' in marketing materials but contain hidden landlord obligations in the lease exhibits — this is why a thorough, clause-by-clause lease review matters before any purchase.
Yes — absolute NNN properties are one of the most common 1031 exchange replacement assets for accredited investors. They provide passive, long-term income with no management responsibilities, making them a natural upgrade from actively managed relinquished properties like apartments, industrial, or office. As long as the property qualifies as 'like-kind' real estate held for investment, it works for a 1031 exchange.
The most reliable absolute NNN tenants include Dollar General, AutoZone, McDonald's (corporate), 7-Eleven, O'Reilly Auto Parts, and many regional QSR operators under corporate guarantee. Starbucks drive-through locations are often absolute NNN, while inline locations may carry minor landlord obligations. Walgreens and CVS typically structure as absolute NNN with very long primary lease terms. Always have an attorney confirm the lease structure before committing.
Current absolute NNN cap rates range from approximately 4.25% to 6.50% depending on tenant credit, lease term remaining, and location. McDonald's and 7-Eleven (A-rated) trade at 4.25–5.00%. Dollar General and AutoZone (BBB-rated) trade at 5.00–6.25%. Walgreens trades at 5.25–6.50% reflecting its recent credit migration. Properties in primary markets trade at tighter cap rates than secondary or rural locations.
Marketing materials, OM packages, and broker descriptions often use 'NNN' or 'absolute NNN' loosely. True verification requires a line-by-line review of the full lease, all exhibits, and all riders for any landlord obligation language — particularly around roof and structure, parking lot maintenance, and HVAC. The ESS Group reviews every lease at this level of detail before presenting any property to a buyer.
Most single-tenant absolute NNN properties are priced between $1.5M and $8M depending on tenant, location, and lease term. Dollar General and AutoZone locations typically range from $1.5M to $3.5M. McDonald's and 7-Eleven properties range from $3M to $6M+. For 1031 exchange buyers, the replacement property must be equal to or greater in value than the relinquished property to defer all capital gains.
Yes — by definition. In an absolute NNN lease, the tenant assumes responsibility for all operating expenses including property taxes, insurance, maintenance, repairs, roof replacement, and structural costs. Your responsibilities as landlord are limited to owning the property and reviewing annual lease compliance. There are no maintenance calls, no vendor management, and no capital expenditure decisions. It is the most passive form of direct real estate ownership.