Net Lease & NNN Investments

Francisco Williams, CCIM leads WCA's net-lease brokerage practice in Southern California and selectively nationwide. The review considers tenant credit, lease obligations and rollover exposure. Exchange tax and legal decisions remain with the client's qualified intermediary and tax or legal advisors.

A triple net (NNN) lease is a commercial lease in which the tenant pays the property taxes, building insurance, and maintenance in addition to base rent — leaving the owner with largely passive income. Single-tenant NNN properties (pharmacies, drive-thru QSR, fuel and convenience, auto service, medical pads) are popular with 1031 exchange buyers because the tenant handles day-to-day operating costs.

A net lease broker positions the asset for the national 1031 buyer pool, not just local investors. Williams Capital Advisors prepares a CCIM-led Broker Opinion of Value, underwrites the lease (term, escalations, options, tenant credit), markets to exchange buyers and their brokers nationwide, and negotiates through closing. Because NNN pricing is driven by lease structure and tenant credit more than local comps, specialist underwriting directly affects the cap rate a seller achieves.

There is no single market cap rate — NNN pricing depends on tenant credit rating, remaining lease term, rent escalations, location, and the interest-rate environment. Investment-grade tenants on long-term leases trade at lower cap rates than franchisee-backed or shorter-term leases. The honest way to price a specific asset is underwriting it: request a complimentary Broker Opinion of Value or screen scenarios with the cap rate calculator at williamscap.ai/tools/cap-rate-calculator.

After selling, an investor has 45 days to identify replacement property and 180 days to close, with funds held by a qualified intermediary to keep the exchange tax-deferred. Single-tenant NNN assets are the most common 1031 replacement because they are easy to identify, finance, and manage. WCA manages the identification timeline, sources NNN inventory nationwide, and coordinates with the intermediary so the exchange stays IRS-compliant.

In a gross lease the landlord pays taxes, insurance, and maintenance; in a double net (NN) lease the tenant pays taxes and insurance while the landlord keeps roof-and-structure responsibility; in a triple net (NNN) lease the tenant pays all three. The fewer landlord obligations, the more passive the income — which is why true NNN deals command premium pricing from passive investors.

Yes. In a sale-leaseback, an owner-operator sells the real estate and signs a long-term NNN lease at closing — unlocking 100% of the property's value while keeping the business in place. WCA structures the lease (term, rent, escalations) to balance sale proceeds against ongoing occupancy cost, then markets the asset to net lease investors.