The Case for Triple Net
Triple net lease properties deliver predictable passive income, corporate-backed tenants, and zero management — making them the go-to choice for wealth preservation and 1031 exchange investors.
Six Core Advantages
Tenants pay rent directly to you — no active management, no phone calls, no maintenance requests. A true mailbox-money investment.
In a triple net lease the tenant covers property taxes, insurance, and maintenance. Your net check is predictable every single month.
Most NNN leases include 5–10% rent bumps every 5 years, or annual CPI-linked increases. Your income grows while you sleep.
Dollar General, Starbucks, CVS, AutoZone — Fortune 500 companies on long-term leases of 10–20 years. The tenant's credit rating backs your rent.
Primary lease terms of 10–25 years mean no vacancy risk for decades. Many leases carry renewal options that extend well beyond the primary term.
NNN properties are the #1 choice for 1031 exchange investors. The long leases, passive income, and corporate credit make them the ideal replacement property.
Lease Structure
Understanding the difference is critical before you buy. Absolute NNN leases carry zero landlord obligations — the tenant handles everything.
Common Questions
A triple net lease is a commercial lease where the tenant pays the three main operating costs: property taxes (1st net), building insurance (2nd net), and maintenance (3rd net). The landlord collects rent net of those expenses — hence 'triple net.' This arrangement transfers operating risk to the tenant and creates a predictable income stream for the owner.
An absolute NNN lease — also called a bondable lease — takes the standard triple net concept one step further. The tenant is responsible for 100% of every cost including roof and structure, with no exceptions and no landlord obligations whatsoever. Even in the event of a casualty or condemnation, the tenant must continue paying rent. Absolute NNN leases command the lowest cap rates (highest prices) because they carry the least landlord risk.
In a standard NNN lease, the landlord typically retains responsibility for the roof and structure. In an absolute NNN lease, the tenant takes on those costs too. Tenants like Dollar General, AutoZone, and O'Reilly commonly sign absolute NNN leases — making them among the most sought-after investments in the single-tenant space.
Entry-level NNN properties (Dollar General, Dollar Tree) start around $1.2M–$2.2M. Mid-tier tenants like Starbucks, Chipotle, and AutoZone typically run $2.5M–$4.5M. Pharmacy assets (CVS, Walgreens) and quick-service restaurants with strong locations range from $3M–$7M+. Cap rates generally run 4.5%–7% depending on tenant credit, lease term, and location.
They are the most popular replacement property category for 1031 exchange investors — by a wide margin. The passive income, long lease terms, and corporate credit solve the two biggest 1031 challenges: finding a suitable replacement quickly and eliminating management headaches. The ESS Group specializes in sourcing NNN properties within 1031 exchange timelines.
Most quality NNN deals — especially off-market ones — are never listed publicly. The best NNN properties are sourced through broker relationships, direct developer connections, and off-market networks. The ESS Group maintains an active pipeline of NNN inventory and can present deals that match your specific tenant, geography, and cap rate criteria.
The ESS Group specializes in NNN acquisitions for accredited investors and 1031 exchange buyers. Off-market inventory, lease review, and end-to-end advisory.