Internationally, it’s recognized as a thriving hub for entrepreneurial activity, start-ups, and ventures. Compared with national economic indicators, residents enjoy below-average living costs.
Investors seeking easy and dependable triple net lease investment assets simply cannot overlook the Lone Star State as a shining beacon of real estate opportunity and prosperity.
When it comes to commercial real estate investment, you can count on Texas to serve the sunny side up. As the second wealthiest state in terms of GDP, a bustling and active economy offers real estate investors the chance to enter a low-risk to passively grow their wealth in commercial real estate. The population has grown a mammoth 16% over the last decade, primarily accounted by economic and lifestyle benefits the state offers, and there’s no sign of this growth slowing down.
Whether you’re already a Texan, you’re considering a move to the Lone Star State, or you simply want to find an out-of-state investment property, south-western triple net lease options deliver high-performing real estate prospects that cannot be passed by.
Texas NNN lease properties offer benefits to landlords and tenants alike. They are structured in such a way that tenants pay for typical expenses such as property taxes, insurances, repairs, and maintenance activities. This affords tenants the ability to customize their space, uniform to their branding identity. For landlords, this equates to minimal additional financial obligations beyond standard capital investment and no responsibilities to property management. Instead, investors are free to move about their lives as they wish whilst pulling in passive cash flow streams and gaining equity in a steadily appreciating piece of real estate.
Lease durations typically range between ten and twenty years, with regular rent increases and renewal options. These generally cater to mid to long-term investment goals. However, if your aspirations are within a more proximate timeframe there are plenty of short-term investment opportunities available to choose from.
Tenant and Industry Overviews
Regardless of which industry you’re interested in investing in, Texas offers a plethora of triple net lease property types. You have your pick of in-house and quick-service restaurants, retail pharmacies, auto and brakes, convenience stores, and gas stations – just to name a few. Here’s an overview of a few of our tenants and their industry performance.
Variety Dollar Stores
We partner with Dollar General and Family Dollar from the low-cost retail variety sector in nnn lease real estate. Dollar General attracts around 40% of all commercial shoppers in the United States and prides itself on easily accessible locations in bustling streets and busy shopping centers.
Because of the inexpensive product range offered by the company, Dollar General performs exceptionally well during economic downturns as more people lend themselves toward low-cost alternatives to save money. During the pandemic alone, net revenue increased by 21.6%. In 2021, the enterprise became inducted into the list of Fortune 100 companies.
This strong, commercial lease backing grants reliable tenancy for real estate investors seeking peace of mind as they enjoy passive cash flow from their real estate investment properties.
The restaurant sector is considered a niche market in the commercial investment space, making it highly valuable. The average American now spends more in the food and beverage industry than cooking at home. In addition, the technological adaptability of the sector buffers against social and economic disruption – as we’ve experienced during the pandemic – that threaten other service industries.
You could invest in a nnn property leased by a mature stage restaurant franchise, Chipotle. The company dominated the industry in 2021, reaping approximately $100 billion in revenue.
Safe chain restaurant investments, like Chipotle, lower your risk factor because of their ability to acclimatize to unpredictable social and economic shifts and leverage hardship to create business growth. Investors can expect an average 18-25% return from this sector.
To capitalize on the lucrative NNN lease properties for sale, Texas, or to learn more about how to step forward into your reL estate investment journey, chat to the dedicated and committed team at Buy NNN Properties today.