Net Lease For Sale in Florida
Are you looking for a net lease investment for sale in Florida? One of the main draws of Florida net leases is that Florida is an income tax-free state. When considering different types of leases, one of the most popular types of investment in commercial real estate is the net lease. This type of lease puts the responsibility of running the business and the upkeep of the property in the hands of the tenant and allows you, the investor, to have long-term cashflow each month. For this reason, a net lease for sale in Florida may be very attractive to a potential investor/landlord. The costs in question are usually typical operating costs or costs that help maintain the property. Other examples of the types of costs the tenant may have to incur are:
- Utility Fees
- Trash Collection Fees
- Property Management Fees, and
- Property Insurance
Although it can vary from lease to lease, what the tenant pays will be outlined in the terms specified. If, for example, a property is leased by more than one tenant (such as a shopping center), then the expenses that the tenants owe will likely be prorated among the tenants depending on the square footage that each tenant occupies. If you are interested in a net lease for sale in Florida, the Avison Young Net Lease Group can help
Are there different kinds of net leases?
There are three main types of net leases.
- Single Net Lease. In this type of net lease, the tenant is only required to pay rent and property taxes. This is one of the most uncommon types of net leases.
- Double Net Lease. In this type of lease, the tenant pays both the insurance premiums as well as the property taxes as well as rent. The landlord is usually responsible for the roof and structure in NN leases.
- Triple Net Lease. This is the most common type of net lease. In this type of lease—also called an NNN lease or a net-net-net lease—the tenant must pay their rent as well as any additional expenses to upkeep the property.
What is a single tenant net lease or STNL?
A Single Tenant Net Lease or (STNL) is a lease in place for one (1) tenant. This should not be confused with a single net (N) lease. The lease structure in place for STNL properties is usually a NNN or Triple net lease where the tenant is responsible for rent and all operating costs. These STNL leases are very beneficial for landlords as they are long-term and provide stable and consistent income.
What are the benefits of a single tenant net lease?
There are many benefits to a single tenant net lease. Some of these are:
- The investor/landlord usually has a stable cash flow. Many of these types of leases typically last anywhere from 10-25 years, and when this is the case, a single tenant net lease can offer the investor of the property stability.
- The landlord has less responsibility. When you are the landlord of a single tenant net lease property, you typically have significantly fewer responsibilities. Instead of worrying about paying expenses—like property taxes—these can be billed directly to the tenant and relieve the landlord of this type of worry and responsibility.
- You may be working with name-brand tenants. When it comes to single net leases, is it not uncommon for some of the larger companies, like FedEx or Starbucks, to wish to become tenants. This can be highly beneficial for the landlord because when you are scoping out your tenants, you want to look at how strong they are financial and what their credit ratings are. This is much easier to do with big companies.
Get the Help You Need When a Net Lease investment is for Sale in Florida!
If you are an investor in a single net lease property, or if you are considering becoming a tenant of this type of property, reach out our net lease experts here. Whether in Florida or around the nation our associates will work with you to identify the right net lease asset for sale.