What are net lease properties?
Single tenant properties, generally with 10-20 year leases with property taxes, insurance and maintenance typically paid by the tenant. Examples of net lease properties include Walgreens, CVS, Applebees, Arbys, Best Buy, Hollywood Video, McDonalds, Pier 1, Advance Auto Parts, Costco, Home Depot and many others. The difference between net lease and SLB is that under a SLB the owner/seller/lessee continues to be the user, such as a corporate HQs or an automobile dealership, whereas with a net lease property the owner/seller is not the user. In other words, Walgreens, Taco Bell, etc, in most cases are owned by investors, not by Walgreens, Taco Bell, etc.
