Net Leased Properties – NNN – Commercial Appraisal & Valuation
We are the foremost experts with comes to the valuation of net leased properties. We have traveled to almost every state appraising single-tenant, build-to-suit, NNN fast food restaurants, dine-in restaurant, drugstores, dollar stores, auto parts retailers, big box stores, banks, ground lease and freestanding retail buildings. It is important that an experienced commercial appraiser of this property type value such properties. Far too often, net leased properties are not correctly appraised resulting in an untrue valuation. Our extensive knowledge of the property type and database allows us to be the leading commercial appraisal company for this property type across the nation. Whether you call it a single tenant net lease property (STNL), NNN property, net-leased investment, single-tenant NNN, net lease property, single-tenant leased property, triple net property, or any other ways, we are your commercial appraisers for this property type.
What is a net leased property?
A single tenant let leased property is typically a build-to-suit freestanding building that is leased and occupied by a lone regional or nationally recognized tenant. These properties carry NNN leases that are backed anywhere from credit tenants with corporate guarantees all the way down to small franchisees/operators. As you may know a NNN lease, is structured to be a turnkey investment property to the owner with all major real estate expenses paid for by the tenant. The risk levels for each NNN property is usually reflected in the cap rate. Typically, the tenant has committed to a long-term lease, usually longer than 10 years up to 25 years with multiple renewal options.
Why use Foss Consulting Group over local commercial appraisal companies?
We are the foremost experts when it comes to this property. We have a dedicated practice group focused on analyzing cap rate trends, credit ratings, operators, length of lease term and more. As you will see in the following, most commercial appraisers make mistakes in the valuation of these assets.
Common mistakes commercial appraisers make in valuing net leased properties
We have seen other commercial appraisers add vacancy and credit loss of over 10% on NNN properties with brand new 20-year corporately guaranteed leased. We have seen commercial appraisers compare cap rate comparables of NNN properties that have less than five years remaining on the primary lease term to NNN properties that have brand new 20-year corporate guaranteed leases . We have seen other commercial appraisers not analyze the particular franchisee. We have seen small franchisee operators being given the same cap rate conclusion of a credit tenant with a corporate guaranteed lease. We have commercial appraisers not analyze store sales. We have seen other commercial appraisers actually conclude expenses for a NNN investment. We have seen commercial appraisers appraise a net leased property in California and use rent and sale comparables along the East Coast. These are just a few of the many examples of why you need an experienced commercial real estate appraiser for this property type.
We have appraised net leased properties across the nation of such national retailers such as: Walgreens, Rite Aid, CVS Pharmacy, Dollar General, Family Dollar, Dollar Tree, Wal-Mart Supercenter, El Pollo Loco, McDonald’s, IHOP, Kohl’s, Chase Bank, Hardee’s, Ruby Tuesday, Applebee’s, Kum & Go, Sherwin-Williams, Pizza Hut, Jack in the Box, Church’s Chicken, Michaels, Sweet Tomatoes, Souplantation, Bucca di Beppo, Golden Corral, Red Robin, Sonic, Carl’s Jr., Popeye’s, Taco Bell, Wendy’s, KFC, 7-Eleven, Circle K, Burger King, Car-Max, Perkin’s, Advanced Auto Parts, O’Reilly Auto Parts, AutoZone, Tutor Time, KinderCare, DaVita Dialysis, Starbucks, Tractor Supple Co., Buffalo Wild Wings, Long John Silver’s, TGI Friday’s, Chili’s Chase Bank, Sports Authority, AutoZone, Whataburger, Academy Sports, Hobby Lobby, AT&T, Staples, Best Buy, Denny’s, Arby’s, Chic-fil-A, Fresh & Easy, Sprouts, Whole Foods, ALDI, ALCO, Car-X, Costco, Sam’s Club, Tires Plus, Dunkin Donuts, La Petite Academy, Lowes, Home Depot and more.
Please contact us for any net leased appraisal services.