Triple Net Explained

Tenancy In Common Triple Net

An increasing popular alternative to sole ownership triple net is an investment in a single large triple net commercial commercial property by multiple property owners, not as limited partners or as an entity, but as individual property owners. This form of ownership is known as fractional ownership or tenancy in common.

While tenancy in common commercial properties are available for virtually all commercial property types, triple net-tenancy in common are particularly popular because of their predictable cash flow backed by national credit tenants. Triple Net-tenancy in common commercial properties can be either single tenant triple net or multi-tenant triple net commercial properties. Additionally, it is common for a tenancy in common Sponsor to convert a multi-tenant commercial property into a triple net through a master lease structure where they lease the commercial property back from the property owners on a triple net basis.

Advantages of tenancy in common-triple net commercial properties include:

1. Zero management headaches

2. Steady supply of tenancy in common-triple net commercial properties available for investment at any given time

3. Invest in larger, higher-quality institutional commercial properties

4. Work with a licensed 1031 realtor throughout the process

5. Variable minimum investment requirements