
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.
Commercial real estate depreciation and cost segregation studies can generate substantial paper losses, sheltering your NNN income from taxation — and potentially offsetting other income.
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.
For investors selling appreciated real estate, a 1031 exchange into a NNN property is one of the most effective wealth-building moves available. You defer 100% of capital gains taxes while transitioning from an active, management-intensive asset into a passive, corporate-guaranteed income stream.
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
Close within 180 days, defer all capital gains taxes, and begin receiving passive rent
Answers to the most frequently asked questions about NNN passive income.