Strategy

Net Lease

ElmTree is focused on net-lease properties, or assets in which the tenant pays a defined base rent to the landlord, as well as covering property-level expenses including taxes, insurance, utilities, maintenance and other operating and capital expenses. This structure is designed to offer predictability and stability to both the tenant and the landlord.

Net-lease graphic

Predictability

  • Specified annual base rent escalations over the lease term generally mean predictable increases in income for the landlord over that period
  • Corporations can lower and fix their occupancy costs and develop more accurate P&L projections due to pre-specified annual rent escalations

Stability

  • Limited or no exposure for landlords to expense increases and unforeseen capital expenditures, as well as minimized re-leasing and vacancy risk under a range of market conditions
  • Longer lease terms for properties that are mission critical to a company’s operation