The Future of Triple Net Leases: Trends Shaping the Market in 2025 and Beyond

In the dynamic economic situation, property investors in the US cater to stable and low-risk sources of income. Among them, triple net lease or NNN stands out for minimum risks and stability. The term refers to a type of leasing, where the tenant/lessee takes on all expenses connected to the real estate: taxes, insurance, maintenance, etc. For a landlord/owner, this is a convenient way to set a stable money flow. Not responsible for any maintenance challenges, the landlord owns a (almost) passive source of income.

To invest with the maximum profit, an owner should know the key triple net lease trends in the US and across the world. See how the current economic situation shapes the industry, and what are potential challenges to experts from NNN.

 

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Trend 1. Focus on Tenant’s Trust- and Creditworthiness

The NNN renting format is primarily used for commercial property: stores, industrial buildings, storage facilities, offices, dining businesses, etc.

According to the S&P Global report, the tenant’s responsibility in NNN is the following: “Under a triple-net lease, the tenant makes lease payments, pays real estate taxes, and insures and maintains the leased asset”. In most agreements, the payments include:

  • property taxes;

  • renovation costs;

  • insurance;

  • possible fees and charges;

  • monthly cost of the real estate, paid to the landlord.

Under such conditions, the landlord is fully dependent on the tenant’s financial situation. Despite the convenience, it poses risks. Fragile businesses, startups, and non-viable business spheres may give up rented property, run bankrupt, and close for good.

The lesson here is clear: as a landlord and investor, choose tenants from viable business spheres. Grocery stores, pharmacies, and fast-food restaurants, for instance, remain viable for decades. Startups and rare business spheres may not be the best option in 2025.

Trend 2. E-Commerce Influences Triple Net Lease Trends

E-commerce takes 16% of the retail industry in the US with a projected 1.2 trillion USD revenue. With local market giants such as Amazon and foreign corporations (Temu and Shein), smaller e-commerce projects suffer from declined demand. This also poses risks for an NNN landlord. Getting used to prioritizing e-commerce projects over others, an investor can make a critical mistake in 2025. Now that the niche is overwhelmed, focus on e-commerce-resistant niches:

  • Medical services: medical offices, especially dental offices, pharmacy storage facilities, urgent care centers, etc.

  • Specialty retail: appliances for venues, fitness studios, entertainment equipment, and other products that cannot be replaced online.

  • Treat the citation from another angle. E-commerce logistics is on the rise and doesn’t depend on market giants. Consider last-minute delivery services and distribution centers and serve online retail.

Trend 3. ESG Spheres are Taking Over

The Environmental, social, and governance industries are gaining popularity among the public. Americans tend to care about eco-movement, trust the state, and pay attention to social spheres. Matthews’ research in 2023 showed that the most visited banks in the USA are National Bank of America, Chase, Wells Fargo, and PNC – all banks, operating within the Federal Reserve System.

This switch to state initiatives, environmental practices, and social responsibility influences triple net lease trends as well. Landlords should pay attention to ESG niches that comply with national environmental practices. Solar panels, agricultural businesses, and LEED certification are worth investors’ attention in 2025.

Trend 4. Integration of Technologies

The smart housing industry and IoT have already entered the residential market. Now, technologies are coming to the commercial property niche, including NNN. As a landlord, attract more tenants with innovative solutions:

  • Remote control. This feature is convenient for both tenants and landlords. Implement high-quality monitoring systems and cameras to control the property’s state in real-time. Commercial renters can also track the staff and manufacturing performance.

  • Predictive tools. Instead of fixing issues, let your tenant predict and avoid them. Monitoring systems help to identify weak equipment, plumbing and electricity issues, etc. This lowers maintenance costs for the lender, and you become a more attractive landlord.

  • Digital communication. Ensure stable communication with the tenant by using digital platforms. Real-time monitoring of maintenance, utility costs, and taxes makes communication easier.

Technological advancement is a mutually beneficial initiative. As a landlord, you control the estate’s condition and easily communicate with the tenant. Meanwhile, your renters save costs and receive automated tools for property maintenance. Despite initial costs, these initiatives are beneficial in the long term.

Trend 5. New Lease Structures and Conditions

Triple net implies that your tenant pays a monthly price (usually, lower compared to other formats) and all the maintenance costs. Yet, the system is changing. Currently, triple net lease trends include hybrid payment models and new conditions for investors:

  • Hybrid system. Basically, maintenance costs are split between tenants and landlords. For example, a tenant pays monthly rent + renovations, while you are responsible for taxes and insurance.

  • Short lease duration. Studies by the University of North Carolina show that 50% of small businesses fail and close for good within 5 first years. Under such conditions, businesses are afraid and rent commercial property for the long term. To cover wider audiences, offer short-team, leasing with renewal opportunities.

  • Rent escalation clauses. This agreement shows how often and how much the rent cost will rise over the years. The landlord covers the inflation, while renters receive a clear understanding of their future expenses.

The NNN market is rising and poses more challenges for investors. Be ready to offer better conditions for your tenants. This may cause a slight decrease in revenue but pays off in the long run. After all, as an NNN investor, you luckily seek passive and easy income – make the deal for a client as well.

Trend 6. Geographic Diversification and Secondary Markets

City centers and industrial districts are primary locations for commercial property investors. Yet, the best property is already occupied. In 2025–2026, focus on wider geography and secondary markets:

  • Real estate in developing countries. Here, industrial property is cheap but brings good revenue.

  • Smaller towns in the US and Europe. This niche is almost empty, and you have all the chances to build trusted relationships with local tenants. As the competition is low, choose property wisely, as selling it will be complicated.

  • Regions with growing populations. Seek counties and cities with the largest percentage of Generation Z population. Turning 20+ years old, these people start to open businesses. The generation is highly focused on ESG and technological advancement.

Such an approach requires you to learn. Explore the markets, compare economies of different countries, and explore the needs of the current region. Note that triple net lease trends and popular business there may differ from large cities. At the same time, you get essential advantages:

  • lower acquisition costs and access to multiple investors;

  • higher cap rates, as markets are not oversaturated;

  • the growing population in developing countries brings higher demand for daily services and products.

Focus on regions with low property taxes. Although you’ll entrust taxation to the tenant, lower fees are beneficial for both of you.

Trend 7. Interest Rate Fluctuations

Interest rates are rising worldwide and causing changes in the NNN market. Now, market giants with large sums are dominating the market. This is, by the way, another reason to focus on new regions. As for 2025, purchasing commercial real estate in popular regions becomes almost impossible. It is not only a matter of price – owners don’t want to lose high-value property.

Experienced investors use this time to find sellers in a tough position. Search for underestimated markets and locations and buy property at lower prices.

Other NNN Trends to Catch Up With

  • Investors become more interested in NNN. Thus, you have to compete and offer better conditions for sellers. With enough cash, you can afford high-demand property, while others should seek real estate in developing regions.

  • The dining industry is on the rise. Food has become the fastest-growing retail industry in the US and the rest of the world. Focus on real estate for restaurants, food stores, delivery services, bakeries, coffee shops, etc.

  • Energy efficiency. Be ready to invest in solar panels and other efficient energy sources. First, tenants are interested in cutting utility costs. Secondly, ESG drives the sustainable approach in business. Offer your clients an eco-friendly commercial property with low utility costs.

  • Rise of medical service. The world’s population is aging, causing higher demand for medical services and healthcare. With over a billion people in the world being older than 60 years, hospitals, pharmacies, and laboratories get higher revenues. Focus on real estate, suited for healthcare institutions.

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FAQ’s

1. How can landlords assess the trustworthiness and creditworthiness of potential tenants to mitigate risks associated with triple net leases?

  • Landlords can evaluate tenants using financial due diligence methods such as:
    • Credit Ratings & Financial Reports: Reviewing credit scores (e.g., from Moody’s, S&P, or Fitch) and financial statements to assess solvency.
    • Business Performance: Examining profit margins, revenue trends, and industry position.
    • Lease History & References: Checking past lease agreements and speaking with previous landlords to gauge reliability.
    • Security Deposits or Personal Guarantees: Negotiating additional financial assurances if needed.
    • Market & Industry Analysis: Understanding how the tenant’s industry is performing and its long-term viability.

2. What specific strategies can landlords employ to adapt to the rise of e-commerce and invest in e-commerce-resistant niches?

  • Diversification into Recession-Resistant Sectors: Focus on properties leased to tenants in healthcare (urgent care, dental offices), essential retail (grocery stores, pharmacies), and service-based businesses (auto repair, gyms).
  • Repurposing Spaces for Industrial Use: Converting underperforming retail spaces into last-mile distribution centers to support logistics growth.
  • Partnering with Mixed-Use Developments: Investing in properties with a blend of retail, office, and residential spaces to create stable demand.
  • Targeting Experiential Retail: Leasing to businesses that provide in-person experiences like entertainment venues, medical spas, and co-working spaces, which are less affected by e-commerce trends.

3. How can integrating technologies like remote monitoring and predictive tools enhance the attractiveness of a property to potential tenants?

  • Operational Efficiency: Remote monitoring systems (IoT sensors, smart HVAC systems) lower utility costs and improve facility management.
  • Predictive Maintenance: AI-driven tools can alert property managers to equipment failures before they happen, reducing downtime and maintenance costs.
  • Enhanced Security & Compliance: Smart surveillance and access control systems provide tenants with better security, reducing liability concerns.
  • Sustainability & Cost Savings: Smart energy systems and green building technologies make properties more eco-friendly, appealing to environmentally conscious tenants and investors.
  • Data-Driven Lease Adjustments: AI analytics can help landlords optimize lease terms by predicting market demand and tenant needs.

Conclusion

While NNN remains a safe and stable leasing type, investors should catch up with the triple net lease trends and not miss the revenue under the current economic situation. Focus on lenders’ financial opportunities and choose viable businesses: ESG spheres, e-commerce-resistant enterprises, etc. Non-responsible for real estate maintenance, you still need to provide clients with competitive property.

Embrace technological advancement and remote control of property. Overall, be ready to embrace the changes and adapt to make a profit out of NNN investments.

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