Walgreens Stores in the USA: An In-Depth Guide into NNN Properties
May 18, 2021 15:42
Have you been on the prowl for buying and leasing properties in commercial real estate? Well, the concept "NNN" or "Triple Net" shouldn't be alien to you.
However, most individuals find it difficult to give meaning to these terms, and this development shouldn't come as a surprise. Why? The commercial real estate world is full of so many technical terminologies, and it can be daunting to keep abreast of all these concepts at once.
But guess what? You're in the right place. Before we take a closer look at some Walgreens stores in the USA taking the NNN world by storm, let's get the basics about "Triple Net" first.
Alternatively, you can find Walgreens stores yourself and see what they offer in terms of returns and cash flow.
Keep your reading glasses on as this article promises to give answers to all your NNN-related questions.
Triple Net or NNN: What do they Entail?
Triple Net and NNN are used interchangeably, and to avoid cases of mix-ups in this article, we'll be towing the latter's path from now on.
NNN is a commercial lease structure whereby the tenant or lessee agrees to shoulder any additional expenses associated with running that property.
At any Walgreens NNN for sale, you should expect to see the following as common expenses. They include:
The total of these expenses is also known as Additional Rent. Here, tenants and lessees are responsible for paying this extra charge alongside their base rent. It's also worth noting that additional rent values aren't definitive due to the fluctuations of costs.
This medium of leasing, more times than not, is a regular occurrence in retail real estate. However, investors can also use them for office space leasing.
Now that we've gotten a foundation at what the terminology "NNN" entails, let's dive into Walgreens stores in the USA and what to look out for in case of an NNN lease.
Walgreens NNN Properties: Specifics to Lookout for in a Sale
If you're looking to eke out profits from a NNN property, you should consider making investments in Walgreens real estate for sale.
That said, the most profitable NNN ventures have some striking similarities. These factors are crucial as they determine longevity upon investment. They include:
Like every other real estate niche, the likelihood of an NNN property yielding positive cash flow is hugely dependent on its location.
To yield massive returns, booming cities with a growing population are the perfect fit for NNN investments.
●Physical Location of the Property
A property that's right in the epicenter of a city, with accessible road points, high traffic flow, and proximity to thriving businesses, is an excellent spot for NNN lease properties.
Drug convenience stores like Walgreens stores in the USA are gaining traction in the NNN industry because they feature long-term tenants and meet location criteria. All these factors, in the long run, tend to make them more profitable than other ventures.
For businesses with an extensive track record like Walgreens, people are bound to trust an entity like this wholeheartedly, even in stringent economic scenarios.
Why? They're in the business of basic life necessities, and people will always transact with them.
That said, if you're an investor on the lookout for profitable NNN properties, choose the best Walgreens portfolio for sale. However, this isn't as easy as it sounds.
Here, you'll need to engage the services of a net lease advisor to help you get the best NNN cap rates and properties.
Who's a Net Lease Advisor?
In succinct terms, net lease advisors are individuals experienced in NNN property-related matters.
These advisors are crucial in helping you navigate through numerous NNN listings and find the one that accentuates all your requirements.
A stellar net lease advisor in your corner accords you the luxury of getting the best of NNN properties while ensuring access to every detail before signing off on a deal.
Net Lease Advisors: Attributes They Must Possess
Although there's an association of these advisors, doing in-depth research to ensure that you get the very best working with you is vital. Why? The services they render goes a long way in your property search and purchase.
Just before you work with one, make careful considerations on the following:
The saying, "experience is the best teacher," comes to the fore here. You should be able to leverage the advisor's vast knowledge of property values, profitability, and market outlook.
2.A Proven Track Record
The net lease advisor you opt to work with should have some degree of success in the field. A reputable advisor should be able to give a clear account of their accomplishments without any lingering doubt.
An excellent net lease advisor should treat you with respect while going through your portfolio. In cases where you state goals, they must pay close attention and proffer solutions that benefit your cause financially and strategically in the long run.
NNN Investments: Pros and Cons
Although purchasing a Walgreens NNN can feature lots of perks for investors, it's not smooth sailing all through as there are some cons in the mix. Let's have a look.
●Low-risk investment: NNN leases are low risk because the tenants take on all expenses relating to the property.
●Reliable income: Since tenants are responsible for footing additional rent and regular rent monthly, investors aren't worried about any surprise cost that could make income dip at any time.
●Long-term occupancy: Tenants usually sign-extended NNN leases within the ambits of seven to ten years. Here, investors aren't worried about tenants leaving before their leases expire.
●Minimal landlord duties: With NNN leases, landlords don't have to worry about maintenance issues as tenants are on the ground to make right anything wrong.
●Flexible ownership: If you own a NNN property, you can monitor proceedings from almost anywhere within the country.
●Capped investment returns: Monetary value on leases are constant as soon as that lease is signed. Here, you don't get any increase as an investor; save for re-lease cases.
●High vacancy risk: A scenario where the tenure of a tenant is up, finding another tenant can be difficult or over expensive to achieve.
NNN properties are lucrative, and it's no surprise why more and more investors are taking another look into this real estate niche.
Using Walgreens stores as a focal point, this article established some facts ranging from what to look out for before investing, the role of net lease advisors, and the pros and cons associated with NNN investments.
That said, are you looking for the best NNN properties around you? You can "Request a List" on buynnnproperties.com today!
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