A Triple Play: Why investors are betting on triple-net-lease assets in the COVID-19 environment

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A Triple Play: Why investors are betting on triple-net-lease assets in the COVID-19 environment

COVID-19 has complicated commercial real estate investment in an unprecedented way. The health and economic crisis has made nearly every investor pause and re-evaluate their commercial real estate investment strategies, regardless of their risk tolerance.

While some investors will choose to sit on the sidelines longer, others are demonstrating a strong appetite for certain property types that show consistent promise and strong performance. In fact, many in the industry believe the commercial real estate investment trends that were in place before the crisis hit are likely to continue, and possibly even accelerate, as a result of COVID-19.

One of these trends is the desire to own single-tenant triple-net-leased assets (NNN). NNN assets are perennially one of the most popular real estate product types in both good and bad economic times. Industry experts, such as SRS Real Estate Partners, have reported activity in the net-lease space has remained strong during the pandemic for sectors such as necessity-based uses, publicly traded companies with strong financial positions, and quick-serve restaurants with drive-throughs.