Businesses are booming, especially the eCommerce industry. These have seen a swift evolution along with the COVID-19 wave, opening up new online companies. But, even during those daunting times of extreme changes and a stream of highly motivated customers, the bottom line remains the same- the growth of your eCommerce business.
And, why not?
Businesses want to attract better customers and more traffic. And, marketing of the same is forward steps. And that’s when you need a much larger space for manufacturing and storing your products or inventory. Thereby, you may need industrial or warehouse space. Manufacturing buildings, warehouses, and multi-use spaces are all industrial properties. These spaces may be helpful for product or goods production, distribution, and storage.
Now that you’re looking for different properties and exploring options, people suggest going in for Triple Net Properties. But, you think what triple net leases are and what makes them an excellent choice?
What are Triple Net Leases?
A triple net (NNN) lease is a popular form of the rental agreement between tenants and landlords or investors for commercial real estate.
Although primary responsibilities fall on the tenant, these are still heavily favoured compared to other variations of net leases. NNN leases present several benefits to investors and tenants, which makes them ideal opportunities for new and seasonal investors.
What are the Tips to Get Started with Triple Net (NNN) Properties for your eCommerce business?
Now that you’re looking for industrial space, here are some tips to get you going. These include what to look for, how to determine spacing and leasing needs, and the basics of industrial, commercial leases.
- Rent and Spacing Needs:
Your business nature ultimately depends on the property type that fits your business needs in the best manner. Industrial property usually falls under three subsets- warehouse space, manufacturing space, and flex space (combination of warehouse and manufacturing).
The industrial space for your eCommerce business depends on your purpose. A warehouse helps in storage and product distribution—a distribution center for distributing products and a warehouse center for packaging and labelling products for shipping.
Thereby, before choosing a triple net property for yourself, determine if you’re looking out to manufacture a product, store your product, package and ship your product, or a combination of the three.
Also, know that the fixed rent is usually less with the triple net lease. For instance, if it’s a new building, tenants may find a net arrangement that’s preferable to other choices. And, if you’re a triple net tenant who’s looking to grow business in a new building can enjoy lower rent and expenses during initial spacing years.
- Determine your Financing Needs:
There are ample reasons why there’s immense growth in the commercial real estate industry services. Some of these are low-interest rates, stock market volatility, and the economy’s slow recovery.
Know that triple net property investments aren’t for everyone. And, triple net property investments need financial sophistication. Thus, it is vital to understand your financing when you’re offered a Triple net lease for sale. Check how you would finance your property. For instance, see if you have a credit union or bank, which you’ll be able to use. Also, be realistic about the available time.
After all, you’re looking for a triple net (NNN) property for your eCommerce business growth and not to be indebted by it.
- Seek Advice from a Triple Net Advisor:
Net lease advisors specialize in the NNN property market. They are entirely aware of the trends that impact a location’s investment potential. If you’re confused about finding an ideal Triple property for your eCommerce business, then having someone with a unique level of expertise holds importance. Their work is to guide investors through finding, choosing, and funding a NNN property.
Also, working with a professional helps you with deeper insights into the potential and longevity of an eCommerce business space.
Finding and leasing a space for your eCommerce business is a crucial step. Thereby, make sure you take adequate time to research your options. Also, review the lease contracts with the attorneys before signing the contract.
By following these tips, you ensure leasing the warehouse space that’s right for your business. And, it also provides that your business assets are well-protected.