Triple-net leases can be a great investment, but not all markets and states are created equal for your investment dollars. You might be asking yourself what NNN markets are best to invest in.
Great triple-net investment properties exist in all states within the US, but that doesn’t mean that some markets aren’t better suited for your focus. However, it can be difficult to spend the time to research where to invest your NNN dollars. You likely don’t have the time to review market research, review tax policies, and locate available NNN properties.
To help streamline the process and make it easy for you to research your next NNN investment, we compiled a list of top NNN markets.
It is critical to remember that this is still commercial real estate. The basics of finance, long-term investment goals, and the industry of the potential renter all matter considerably when looking to purchase a triple-net property. As always, the location of any property within any geographic area is just as, if not more important, than the market itself. We know as a commercial real estate investment service that investments always come with risk, and none of these markets are immune from it.
The location also matters. Don’t interpret this to mean that every NNN lease within these markets is a sure thing. Take your time to research the particulars of every investment opportunity for the best results. Still, these markets are some of the fastest growing and most vibrant within the country, and for good reason.
NNN Rules of Thumb To Consider
Triple-net lease investing requires a working knowledge of multiple factors to make good decisions. A triple-net lease is a multifaceted agreement, and a unique combination of factors needs to come together to make a favorable location.
- Low Tax States: A state lacking a capital gains tax, in particular, will always be a great NNN consideration.
- Strong CRE Performance: Generally, if the commercial real estate market is booming in any one location, the better the odds that it’s a solid NNN investment.
- Growing Economies: Strong CRE performance correlates to a healthy overall economic outlook.
- Low Population Density: This is not a hard-and-fast rule, but growing markets in low-population-density states will offer affordable NNN investments. High population density markets on the coasts will likely see higher investment costs.
- Trusted Advisors: If you’re a stranger to these markets, attempting to accurately gauge and assess risk remotely is probably not a good idea. A trusted advisor within the market or the triple-net lease space is a great resource to help you make more informed decisions about any NNN investment.
Now that we’ve gotten all that out of the way let’s dive into specific markets.
NNN Market 1: Arizona
As it turns out, Arizona isn’t just a desert. More and more residents from higher-cost states are turning to Arizona for the low cost of living, and that economic growth has made Arizona a prime location for triple-net leases. Phoenix has been one of the largest growth drivers, but Yuma and Tucson have also become great locations for triple-net leases. Quick-service restaurants and retail pharmacies, in particular, are two tenant types primed for growth within Arizona, and triple-net investors would do well to take note of any investment opportunities within those industries in Arizona.
NNN Market 2: Texas
Texas is an attractive market for triple-net lease investments for a few reasons. First and foremost is the sheer availability of land. Commercial real estate investors love the Lone Star State for its low-cost acreage. Next is a favorable growth rate. Every year, burgeoning markets like Austin, San Antonio, and Dallas receive transplants both from within the state of Texas and across the country. This influx of residents has led to a massive increase in the number of retail stores, quick-service restaurants, and gas stations needed to support this growth. Add in a favorable regulatory environment, and Texas is a great state for a triple-net lease.
NNN Market 3: Colorado
Colorado is not as low-cost as Texas or as spacious, but it does have a growing population and a strong economic situation. Colorado also does not tax capital gains, making growing markets like Colorado Springs and Denver enticing NNN investments. The state is also one of the least densely populated states within the US and is expected to continue to grow in the years ahead.
NN Market 4: The Carolinas
Both North and South Carolina are also solid choices for triple-net lease investments. North Carolina in particular has experienced significant growth in recent years, ringing in as the state with the fourth-highest population growth in 2021. This rapid growth is largely due to steady job growth in the region, which in turn helps ensure that the Carolinas will be a great triple-net lease investment market for years to come.
NNN Market 5: Florida
Florida’s population density is higher than the other markets on this list, but that doesn’t make it any less attractive of a market for NNN leases. The favorable business climate and population growth help Florida. The state’s status as a spring break and vacation destination has also made it a fine state for a NNN investor. We recommend investigating Cape Coral-Fort Myers and North Port and Port St. Lucie, a couple of Florida’s fastest-growing locales, for optimal NNN investments.
Consult Brisky Net Lease For Your NNN Lease Needs
If you’re considering a NNN investment, turn to a trusted real estate investment service to help you navigate the intricacies and trends of the market. If you’re not well-versed in the particulars of any given market, turn to Brisky Net Lease to help guide you through the process.
We help both investors and sellers maximize their time and close mutually-beneficial deals. We offer…
- Property Marketing
- Tailored NNN Investment Opportunities
- & More
Contact Our Commercial Real Estate Brokers For A Free Triple-Net Lease Investment Consultation!