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Am I the only one who thinks triple net leases are overrated?
I just crunched the numbers on a property in Austin with a triple net lease. Everyone says you want these because the tenant pays everything. But I found out the cap rate was only 5.2% on that deal. That's lower than a standard gross lease property I looked at in San Antonio that hit 6.8%. I got this from a local market report from Marcus & Millichap last week. The extra risk of a tenant leaving and you being stuck with all those expenses just doesn't seem worth it. Has anyone else found a triple net deal that actually beat a good gross lease on total return?
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the_mia8d ago
Plus that 5.2% doesn't even keep up with inflation most years.
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beth_sanchez478d ago
Plus that number is cooked by averaging out the big market winners.
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