BreakThru Realty

Guide

Buying a Tenant Occupied or NNN Investment Property in Florida

When you buy a leased building you buy the lease. Its tenant, its remaining term, its rent increases and what it leaves the landlord to pay decide the value. Read the lease line by line, confirm it with the tenant, and price what happens when it ends.

Ask a Commercial Specialist · (786) 914-1017

BreakThru Realty · Founder and Broker of Record: Tyson E. Sam, Florida License 3565210

Who Pays What

In a triple net lease the tenant pays taxes, insurance and maintenance; in a double net lease the landlord often keeps the roof and structure; gross and modified gross leases leave more with the owner. Read the maintenance and repair clauses rather than the label.

The Tenant's Credit and Who Backs the Lease

A lease is as strong as the party paying it. Find out whether the lease is signed by the parent company, a franchisee or a local entity, and whether a parent company or an owner personally backs it. Review financial statements where available.

Term, Increases and Options

Remaining term decides how long the income is secure. Rent increases protect against inflation. Renewal options let the tenant stay at set rents, which may be below market by then. Price the building both with the tenant and without it.

Estoppels and SNDAs

A tenant estoppel letter confirms the lease, rent, deposit and any defaults; a subordination, non disturbance and attornment agreement sets the tenant's relationship with your lender. Lenders usually require both.

Rights That Bind the Owner

Look for rights of first refusal or first offer to buy, use restrictions that protect one tenant from competitors, termination rights and restrictions on what you can do with the rest of the property.

1031 Exchange Timing

Many buyers of leased property are completing a 1031 exchange with fixed deadlines for identifying and closing on replacement property. A qualified intermediary and a tax adviser structure it; plan the due diligence to fit the deadlines.

See the Listings

Ask a Commercial Specialist

Call or text (786) 914-1017 or email sales@breakthrurealty.com. A licensed BreakThru Realty agent follows up within one business day.

Your Next Commercial Buyer May Already Be Working With BreakThru Realty

Investors, owner users and business owners across Florida work with BreakThru Realty with defined requirements: the asset type, the size, the location, the price and the return they need. If you own commercial property, a broker can review it against those requirements before you list, and if no buyer on file fits, explain the marketing that reaches the rest of the market.

Before you list, a broker reviews what you own, the market around it and whether an existing buyer's requirements match. If none does, you see how we would position it to reach other qualified buyers.

Find Out If We Have Your Buyer · Discuss Selling With BreakThru Realty

A potential match is a conversation, not an offer, until the buyer sees your property and makes one. No buyer is named and nothing about your property or business is shared until you decide to proceed.

Frequently Asked Questions

What is a triple net lease?
A lease in which the tenant pays the property taxes, insurance and maintenance in addition to rent. Read the repair clauses, because some triple net leases still leave the roof or structure to the landlord.
What is a tenant estoppel letter?
A signed statement from the tenant confirming the lease terms, rent, deposit and that no defaults exist. It protects a buyer and the lender from undisclosed changes or disputes.
What happens when the lease ends?
The tenant renews, leaves or negotiates new terms. Underwrite the cost and time of releasing the space, because the value depends on it.

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