More and more landlords and investors are becoming aware of the benefits of investing in triple net properties, which is why there is an increased search for Active Hobby Lobby listings and related businesses.
Let’s have a look at what a triple net lease is, and the benefits provided.
What Is a Triple Net Lease?
A triple net lease (or NNN) is an arrangement where the tenant pays either a portion or all the ongoing expenses of a property, in addition to paying rent and utilities. These expenses include building insurance, taxes, maintenance costs.
Benefits of Triple Net Leases
Triple net leases offer a lot of benefits to investors, some of these benefits are:
- Minimal Landlord Duties
With tenants covering all building expenses from property taxes to maintenance costs, there is little left for landlords to do. The investor or owner of the property gains protection from the operating expenses of the property.
- Long Term Occupancy
CNN’s tend to have long-term lease periods. These periods could be up to 20years or even more. Knowing that a tenant is committed to a space for the long term gives a level of comfort to property owners.
- High-Quality Tenants
A triple net lease is associated with high-quality, credit-grade tenants, giving property owners the impression of a lower risk of a lease default by tenants. This impression grants the assurance of a long-term reliable stream of income from lease payments.
- CNN’s Are Transferable Leases
With the popularity of triple net leased properties among real estate investors, these properties are frequently bought and sold amongst investors. Fortunately, the sales of these properties don’t affect the lease agreements, which means the new owner can also enjoy the benefits of the lease payments.
The Hobby Lobby Brand
Hobby Lobby is a highly sought-after brand, renowned for its involvement in the arts and crafts business. The company is currently listed on Forbes List of America’s Largest Private Companies. Hobby Lobby corporate financial fundamentals make it a strong company and a great tenant.
The company started as an extension of Greco products which was a miniature picture frames company that was founded in a garage by David Green in 1970. Hobby Lobby’s officially started its operations 2 years later on August 3 1972 and has been growing ever since it started on a mere 300 square feet of retail space.
With nearly 700 stores that offer over 75,000 craftings and home decor products, Hobby Lobby is regarded by many as a leader in the arts and crafts industry.
Things to Note Before Investing in NNN Hobby Lobby Stores
An investment is not something that you jump into, it takes lots of planning before starting one. Below are some things to consider before taking advantage of various Hobby Lobby real estate for sale:
- Cost
Cost is an important factor that determines if you should go ahead with an investment or not. You want to consider the price of the properties in active Hobby Lobby listings you are investing in, to create an awareness of your available financial options, so you can determine your next step.
- Risks Involved
It’s common knowledge that businesses are not risk-free, and it is important to know the risks involved in the steps you are about to take in a real estate venture. Having in-depth knowledge of these consequences helps you decide whether to avoid them or find a way around them.
- Mode of Operation
Every company has specific guidelines and principles it operates on. Being aware of your tenant’s operations gives an insight into how the property you are looking to invest in will be put to use. With this in mind, it is advisable to have a background and in-depth knowledge of the company using the property you want to purchase.
- Terms of Lease
Having an understanding of the lease terms should be a priority when buying a triple-net property. This knowledge springs up the decision on whether the terms should be agreed to or rejected to avoid getting caught unawares by unknown conditions.
- Expected Profit
Profit is the key reason for investments. A triple net property that guarantees returns to the investor is sure to gain priority for investment over one without guaranteed gains. For this reason, an accurate estimation of profits is required before purchasing a real estate NNN property.
Reasons to Invest in Hobby Lobby
It’s important to have a plethora of reasons that back your decision to invest in a triple net property. Some of the reasons you should take advantage of active Hobby Lobby listings are:
- National Name Brand Recognition
The name Hobby Lobby has gained recognition in the arts and crafts industry. This recognition guarantees a variety of customers flooding these stores. So as an investor, you don’t have to worry about your triple net lease investment having a poor business run.
- Long Term Lease Periods
Active Hobby Lobby listings tend to have long-term lease periods. This guarantees the enjoyment of a steady long-term income by an investor. So if you’re looking to invest in Hobby Lobby, keep in mind that it is a long-term lease that is sure to produce returns over a long term.
- Leases are Landlord Favorable
Hobby Lobby is renowned for being a good tenant. And with this in mind, these stores belonging to this brand tend to agree to lease terms that favor landlords and property owners. So rest assured you are bound to get the most out of investing in these properties.
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Conclusion
Triple net real estate properties like Hobby Lobby stores are good real estate investment opportunities that you should be looking to capitalize on if you’re keen on investing in the real estate sector.
These properties are bound by lease terms that are favorable to landlords and investors, as they will have minimal responsibilities to handle. Also, the long-term stream of income should be a convincing factor to buy these properties.