Triple Net Lease (NNN) ROI Calculator
Triple Net (NNN) leases shift property taxes, insurance, and maintenance to the tenant — leaving the landlord with predictable mailbox-money cash flow. They are the most passive form of direct commercial real estate ownership.
Why NNN Leases Are Passive
The tenant pays property taxes, building insurance, and all maintenance (including roof and structure in absolute NNN). The landlord collects net rent with no operating expense responsibility. This makes NNN the most passive direct real estate ownership available.
Tenant Credit Determines Cap Rate
Cap rates compress for high-credit tenants. A 20-year lease backed by Walgreens (S&P BBB) trades around 5.5% cap. The same building leased to an unrated franchisee might trade at 8.0%+. The cap rate difference reflects perceived income reliability.
Rent Escalators And Mark-To-Market
Standard NNN leases include 2% annual or 10% every 5-year rent bumps. Without escalators, real returns erode to inflation. At sale, the rent at termination resets to market — often dramatically higher or lower than contractual rate depending on tenant performance and location.
Source: CBRE Net Lease Market Report 2026, Boulder Group Net Lease Trends. Last updated: May 2026.