APRIL ISSUE: Day in the Sun

Investors eschew double-net leases, demand triple-net, longer structures.

Investors Eschew Double-Net Leases, Demand Triple-Net, Longer Structures

By Keat Foong, Finance EditorGoldbuilding

The sun may have set on the day of the double-net lease—at least for now.

Net-leased retail stores coming onto the market today are mostly triple-net—even among brands that traditionally preferred double-net structures, according to Robert Miller, managing director of corporate sale-leasebacks at Calkain Cos.

“One of the trends we are seeing is a move away from double-net lease to all triple-net lease,” observed Miller. New Rite Aid stores, for example, have become exclusively triple-net, and Dollar General, which used to sign mostly double-net leases, is now likely to go with more triple-net structures.

 

Read the full interview in the April 2014 issue of CPE. Access is free!