4 Important Tips To Help You Engage In A Successful NNN Lease Property Agreement

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When thinking of NNN lease property, you should find a property that meets your physical needs, has the potential to make you money, and, most notably, a property that will give you peace of mind throughout the lease period. It’s therefore essential to consider some factors to help you make the right decision before investing your money. However, having a reputable NNN lease company like the SIGNNN Investment company will help you invest your money without falling into destructive traps.

1. Understand Your Full Financial Commitment.

Before you even begin looking at NNN lease properties, you need to have a big-picture view of what this lease will entail financially. You should know your current financial health – including cash flow, projected annual revenue, and ability to assume risk – before moving forward with the NNN lease agreement. Understanding your financial strength and commitment ensures you know what you can afford. There are various additional costs for nnn meaning the tenant pays not only rent but also the operating costs of the building. The NNN lease agreement leads to a lower rent but higher variable costs.

Some may consider obtaining a commercial real estate loan to secure a commercial property for their business. As always, it’s essential to weigh the pros and cons of going into debt to grow your company. Be clear about the potential return on investment before financing the acquisition of commercial space. NNN leases are a long-term commitment. Understand how you will pay for a commercial lease by running realistic financial projections based on existing revenue.

2. Read Up on Real Estate NNN Lease Terminology.

Financial preparedness isn’t the only factor determining whether you can lease commercial space. Even if you think you have found a perfect location that you can afford, read the fine print before committing.

For example, a business owner should understand the differences among classes of leases such as NNN leases and absolute NNN leases and the difference between rentable and usable space. Usable space is strictly the space you occupy and use for your business. You may be charged more for the shared costs of the entire rentable space of the building.

Many additional items may be part of the lease agreement, including real estate taxes, utilities, insurance, and maintenance and operating costs of the building. You should be aware of them. Depending on the type of lease, it can result in additional costs to the transaction that business owners should be mindful of. In addition, the lease will need to include provisions for subletting, expansion, and possible early termination.

Always hire a professional to ensure success. NNN property experts, such as Sands Investment Group, can give you a basic overview of commercial real estate and help you understand what you are getting into and what to expect.

3. Don’t Try To Do It On Your Own.

Even if you take a DIY approach to run your business, think twice about going through the leasing alone. While working with an experienced NNN lease agreement and investment experts may be an expense upfront, it can help you avoid easy-to-make and expensive mistakes and negotiate better terms for your lease.

Business owners, particularly founders of small companies, can miss nuances and essential terms in the documents, which is why a neutral, third-party advisor can help negotiate more favorable terms and know when and where to challenge existing offers. However, it’s important to note that it’s also easy for you as a business owner to get caught up in the way a space looks, rather than the terms of the lease, which can impact the space management, operations, and financial obligation over the terms of the lease.

4. Think Long-Term.

You may not plan to stay in the space you want to lease forever, but it’s essential to think about the long-term effects your retail or office building will have on your company’s image.

With an NNN lease property, you are also investing in your company’s brand. Think carefully about where you want to establish your footprint and what type of image a particular neighborhood or facility conveys. Be sure that your investment, legal, and real estate advisors help you design a strategy that works for the future of your business.


As you undertake to sign an NNN lease agreement, it’s crucial to understand how commercial leases work. Whether you are a business person who wants to lease a space for business or an investor who wants to acquire a commercial property through lease, it’s essential to seek the services of an expert. Hire a competent lease company, such as Sands Investment Group that understands even the minute lease agreement differences, which can significantly impact your cash flow.

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