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Cap Rate Financials Net Lease Reconciliation

Analyzing tenant default risk in commercial real estate

We discussed certain net lease capitalization rate (cap rate) components in a recent article. Today, we focus on breaking down one component, tenant default risk. Tenant default risk is the possibility of a tenant defaulting on their lease obligations. The default may be monetary such as failing to pay rent when due, or in principle […]

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Cap Rate Net Lease

5 items to include in net lease cap rate calculations

Investors and stakeholders in the net lease real estate world will be familiar with the term capitalization or “cap” rate. Cap rate is a term used by net lease brokers to describe the value of a property, the yield a property provides, and the supposed risk associated with that property.  Cap rates for comparable sales […]

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Broker How To Net Lease

3 benefits for brokers who partner with CAM

We continue to form strong partnerships with brokers, because of the mutually beneficial experience for CAM, CAM clients, and brokers alike. Below are three benefits net lease brokers accrue when they partner with us. Professionalization of net lease ownership with efficient processes and ongoing communication Asset managers professionalize the real estate ownership process, beginning with […]

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Broker How To Net Lease

The importance of due diligence when selecting your real estate broker

Net lease real estate brokers provide significant value to real estate transactions. Among other things, they act as a level-headed go-between for the respective parties, and provide extensive experience and knowledge to help successfully facilitate transactions.  Choosing the right broker is critical for achieving net lease investment goals. We have a lot of experience working […]

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Asset Manager How To Net Lease

4 benefits of hiring a net lease asset manager

There is a common misconception in the net lease industry that tenants automatically adhere to all of their lease obligations, and that a net lease asset is passive. The recent impact of COVID-19 on the retail industry showcases the real risks in the net lease sector, as a large number of tenants failed to pay […]

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How To Net Lease

9 strategic steps for net lease properties with 5 or fewer lease years remaining

Net Lease properties derive a significant portion of their value from the quality of the income stream associated with the lease. For a majority of net lease owners, preserving their income stream from an investment grade tenant is the most critical aspect of ownership. Tenants know this and sometimes leverage it by threatening to vacate […]

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Net Lease

Double Net Lease Properties vs Triple Net Lease Properties

Net lease properties offer commercial real estate investors more passive ownership than traditional multi-tenant office or multi-family assets. Net leases range from absolute net leases (triple net or NNN) where the tenant pays property taxes, insurance, sales tax on commercial leases, and maintenance; to single net leases where the tenant covers property taxes, but the […]