Triple Net Explained
Many property investors are choosing to engage in single, larger
triple net commercial
commercial property investments instead of a sole ownership triple net. This form of ownership is known as a
TIC investment.
Triple Net-TICs are particularly popular because of their predictable cash flow backed by national credit tenants. Moreover, it is common for a
TIC 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 investors on a
triple net basis.
Tic-
triple net advantages include:
1. Freedom from the hassles of day-to-day management
2. Readily available
commercial property
3. The opportunity to invest in higher-quality institutional
commercial properties
4. Assistance with the entire
exchange process
5. Flexible investment sizes based on
commercial property type and location