Image via WikipediaNet leases are commercial real estate investments in which the tenant takes more responsibility for the building, while giving the landlord less management
responsibilities.
Modified Net
In a standard modified net lease, the tenant pays all utilities, maintenance on the building, repairs, and insurance.
The benefit of this type of lease is that the tenant has a vested interest in the property and is more likely to take care of the property.
In contrast to a property without a modified net lease, the tenant may only be responsible for basic liability insurance and utilities.
The down side of this type of lease is that there is still management responsibilities associated with this lease structure.
Therefore, if there is a leak in the roof, guess who the tenant is calling?
The modified lease is better than a traditional commercial lease but is on the lower end of the spectrum when it comes to net leases.
Triple Net (NNN)
Triple net lease or NNN lease tends to be the industry norm and most sought out.
However, the tenant is responsible for property expenses that include property taxes, property insurance, and maintenance.
Many times, triple net or NNN lease properties are guaranteed by corporate credit tenants such as Walgreen, CVS, Burger King, McDonalds, Borders Bookstore,
etc.
The downside to this type of lease is minimal, but can have a great impact on the purchase price of the asset (property) in question.
A credit tenant is usually a public or private entity that has a strong credit rating by the S&P.
Thereby, offsetting risk associated with buying a NNN property guaranteed by a non-credit tenant.
If that franchisee has financial problems and must close, the likelihood of the investor being able to obtain the rents that are due for the remainder of the lease, drastically diminish.
Other than paying debt service, the investor can look forward to receiving a fixed rent check each month according to the lease that was signed.
These leases are very similar to NNN leases; however, the landlord is generally responsible for structural damage such as the roof and/or bearing walls.
Again, the management duties are drastically diminished in this type of lease situation.
In addition, many double net leases are actually completed by franchisees of major brands that are able to pay for much of what a NNN tenant pays for, however, does not want the liability of roof and structural damage.
The investor will receive a fixed rent check each month according to the lease that was signed and pay all debt service associated with the lease.
For example, many commercial brokers will market a property as a triple net or NNN lease property; however, the property may actually be a NN or double net
lease.
Finally, net lease investments are the safest and most risk-averse commercial real estate investment in the market place, due to their fixed rents, tenant
responsibility, and mostly corporate guarantees.
In addition, remember that commercial brokers are professional sales people; therefore, it would be wise for potential net lease investors to retain the
services of a professional commercial real estate investment advisor to work on their behalf.
Thereby, ensuring the investor gets the best deal possible utilizing the investment advisors strong negotiating skills, and decreasing the hassles
associated with buying net lease commercial investment property.
6. Review of the EGO Rubber Landing Net Line From Adventure Products
Anyone familiar with how our crew fishes knows that our equipment receives a lot of abuse and misuse.
The first thing that is apparent with the EGO Rubber Landing Net line is that the net is the wide rubber mesh.
First that the net would be heavy and second, that it wouldn't move through the water well.
You had to get it under the fish and lift because there was no sweeping through the water.
The netting also moves in the water better than older style rubber nets.
In reality the mesh on the EGO Rubber Landing Net will stretch to 1.
Additionally the rubber material is gentle on the fish, which is important for catch and release situations.
One other really nice thing about the rubber netting on the EGO Landing Nets is that they don't tangle up hooks.
With a traditional nylon mesh or even a coated nylon net, those hooks usually got tangled up and had to be carefully removed.
Even if they came out of the fish and got hooked in the net, they came out easily!
Have you ever dropped your net overboard? Our crew fishes Puget Sound from our 19' Alumaweld, and generally are at a loss for where to put the net when we
are actively fishing.
We have nearly lost several nets this way.
Even though it floats, the EGO Rubber Landing Nets feels solid in your hand.
The handle is comfortable feeling and the octagonal shape makes it easier to control, especially if you are fishing solo and have to land your own fish.
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