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.
TRIPLE NET LEASE OVERVIEW
EXPENSES PAID BY
TENANT
TRIPLE NET LEASE
Net Rent + Property Tax + Property Insurance + Capex, Maintenance & Repair Expenses
OWNER
None*
*The diagram above represents the typical expense structure for a property with an absolute NNN lease
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 escalation
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
