
Triple Net (NNN) properties are the only real estate investment that delivers what every other category only promises: genuinely passive income backed by Fortune 500 corporations, with zero landlord responsibilities.
4.5%–7.5%
Typical Cap Rate Range
10–25 Yrs
Average Lease Term
$0
Monthly Management Costs
100%
Corporate-Guaranteed Rent
Most "passive" real estate investments still require your time. NNN is different — and the difference is structural, not a matter of degree.
The corporate tenant — McDonald's, Starbucks, Dollar General — is contractually responsible for property taxes, insurance, and all maintenance. Your only job is depositing the rent check.
Every rent payment is backed by a Fortune 500 balance sheet — not an individual, not a small business. Investment-grade corporate guarantees with credit ratings from Moody's and S&P.
NNN leases run 10–25 years with built-in rent escalations — typically 10% every 5 years. Your income grows automatically without any action on your part.
Eligible improvements may be depreciable, but basis, current law, and deduction limitations matter. Your independent tax advisers should evaluate any study and the actual tax treatment.
How triple net lease properties compare to the most common alternatives.
| Investment Type | Typical Yield | Management Required | Tax Efficiency |
|---|---|---|---|
| Dividend Stocks | 1.5%–3.5% | Market volatility risk | Dividends taxed as ordinary income |
| Rental Apartments | 3.5%–5.5% net | High — tenants, repairs, turnover | Standard depreciation |
| REITs | 4%–6% | None — institutional managed | Dividends taxed as ordinary income |
| NNN Properties★ Best | 4.5%–7.5% | Zero — tenant pays everything | Cost segregation + depreciation deductions |
Triple net lease investing is not for every investor. It's designed specifically for people who value income predictability, tax efficiency, and the freedom that comes from truly hands-free ownership.
1031 Exchange Investors
Selling appreciated property and seeking passive, management-free replacement income
High-Income Professionals
Physicians, attorneys, and executives who need income without the time commitment
Retirees and Pre-Retirees
Investors building predictable income streams that require no active involvement
Wealth Preservation Investors
Ultra-high-net-worth individuals seeking durable, institutional-quality income assets
Illustrative example. Actual figures vary by property, financing, and market conditions.
An NNN property may fit a replacement-property search when its lease, tenant, location, and timing meet your criteria. A qualifying exchange may defer eligible gains; your QI and tax advisers should confirm eligibility, requirements, and federal and state treatment.
Close on your relinquished property and engage a Qualified Intermediary to hold proceeds
Identify your NNN replacement property within 45 days — corporate-guaranteed, passive income
Coordinate acquisition timing with your QI, lender, and advisers, who confirm exchange requirements and treatment
Answers to the most frequently asked questions about NNN passive income.