The Risks and Benefits of Triple-Net (NNN) Properties

The NNN (net net net) deal is a popular property type in commercial real estate. This means that the tenant is responsible for all three -- the tax, insurance and the maintenance. These deals have helped the part-time investor who seeks no management responsibility. Investors making use of debt financing are able to produce leveraged returns in the range of 10 percent to 12 percent. However, there is a caveat -- NNN is not devoid of risks and one needs to be cautious.