Vent: I was wrong about triple net leases until that strip mall in Tulsa

I used to think triple net leases were the best thing for small investors. Then I took on a 12,000 square foot strip mall in Tulsa last year. The roof needed a full replacement after 8 months, and I was stuck with the $47,000 bill. The anchor tenant had a clause that let them cap their share of common area costs. So I paid for most of it while their rent stayed flat. Has anyone else had a nasty surprise with a triple net lease that made you rethink using them?

2 comments

2 Comments

jordan1847h ago

Triple net leases work fine if you actually check the tenant's cap clauses before signing.

logan2991h ago

Are those cap clauses usually enforceable though, or do tenants try to fight them when big expenses hit? I've heard mixed stories from people who thought they had solid caps set up.