Nnn Commercial Real Estate

Written by Linda Alexander
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Combining TIC ownership with a triple net, commercial real estate lease gives you many advantages. First, you have the advantages that come with owning TIC property. You don't have to deal with daily property management. You will receive a steady income and the combined knowledge and experience of the other individual owners of the property. There is a lower minimum purchase required than if you were to buy the whole property yourself, and therefore, you can diversify your holdings.

Combined NNN, TIC and 1031 Exchanges

Triple net leases offer their own benefits. The tenant acts like an owner in the sense that they are responsible for maintenance, utilities, landscaping, and so forth. NNN tenants are almost always financially solvent and credit-worthy, meaning you will get your rent payments on time. In addition, you can have ownership in a property that is leased to a large national retailer, the federal government, or a Fortune 500 company!

Thanks to an IRS ruling in 2002, TIC properties can be exchanged under IRC 1031, just like any other real estate. Your fraction of the property and 100 percent of your interests in it can be traded and exchanged for interests in other property that are of equal or greater value. The secondary market for TIC properties is growing every day.

If you need help finding properties that qualify for TIC ownership, consult with a company that specializes in helping investors like you. There are firms who do nothing but locate suitable properties. Others combine 1031 services such as intermediary services and property location.

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