Property type

Triple Net (NNN)

Educational overview for 1031 exchange planning. Not investment advice.

Category: Net LeasepassiveAsset class: Net Leasefee_simpledstnnn_lease

Overview

Triple-net (NNN) leases require the tenant to pay property taxes, insurance, and maintenance.

General characteristics

Common in 1031 replacement planning for owners seeking passive cash flow.

Potential benefits

  • Predictable income\n- Minimal landlord responsibilities

Potential risks

  • Tenant credit and concentration risk\n- Sensitivity to interest-rate environment

Management requirements

Tenant handles most day-to-day responsibility.

Liquidity considerations

Direct: moderate. DST: very low.

Tax considerations

Generally eligible for 1031 exchange when held for investment.

Common investor profiles

Owners prioritizing passive monthly income.

Educational information only. The content on this page is general education and is not tax, legal, accounting, or investment advice. Consult your own CPA, attorney, and licensed investment professionals before making any decision related to a 1031 exchange or Delaware Statutory Trust.