Investing to the third power: why people are betting on triple-net-lease assets in the COVID-19 environment

Investing to the third power: why people are betting on triple-net-lease assets in the COVID-19 environment

In a unique way, COVID-19 has led to enormous complications for commercial property investors. Every investor has been forced to review their commercial real estate investment strategies due to the economic and health crises, regardless of their risk appetite.

Many investors remain cautious, but others are attracted to property types with a consistently good track record and robust performance. Many in the industry predict COVID-19 will accelerate the investment trends seen before the financial crisis.

An example of this trend is the desire to own single-tenant triple-net-leased assets (NNN). Whether the economy is good or bad, NNN assets are among the most popular real estate products. Net-lease activity has remained strong in the net-lease space, according to industry experts, like SRS Real Estate Partners, particularly in necessity-based uses, publicly traded companies with strong financial positions, and quick-service restaurants.