Triple net lease stands out as the safest rental type for US investors. The term means a type of rental where a tenant takes on all the property expenses, including insurance, renovations, utility bills, and associated outgoings. For investors, the NNN is a passive income source with minimized risks and interference with the lessee’s decisions. Whether you’re a property owner or plan to invest in one, keep reading and discover who your potential tenants are in 2025.

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Understanding the NNN Market of 2025

Triple-net or NNN renting type implies that all property-associated costs are given to the renter instead of a landlord. They include property taxes, utility bills, renovations, breakage fixing, insurance, etc. Such a deal offers advantages and pitfalls for both sides:

• The landlord doesn’t spend time and resources on property maintenance, which makes NNN a passive income source. At the same time, such renting type is cheaper and leads to lower revenue.

• A renter is obligated to control all expenses, which is both a positive and negative side. Under such circumstances, the client can choose an insurance agency, lower utility costs, and apply for tax reduction.

In 2025, the NNN is as popular as always, but landlords need to know the key tendencies. For instance, an unstable economic situation makes stable and high-demand businesses the best choice, although their revenue is smaller compared to startups and innovative projects. All the following industries, as you will see, are essential in modern urban life. By focusing on high-demand industries, an investor cuts a long-term deal with low risks.

Take a look at the key industries for the NNN leasing according to statistics. The choice factors included an average renting period, the industry’s crisis resistance, and consumer demand.

Convenience Stores: Market with the Longest Rent Duration

According to official statistics, convenience stores show the longest duration of triple net leasing. An average store uses the services of one landlord for 14+ years, compared to only 6.9 years among banks.

There are a few reasons:

• Convenience stores are always in demand among customers, no matter what economic situation they live in;

• such stores replace large malls and supermarkets in distant areas, where the choice of free property is quite narrow – thus, store owners choose one landlord and work with them for a long period;

• these businesses have stable business models, which reduces the risks of bankruptcy or unsuccessful innovations.

The revenue from convenience store tenants may be lower compared to medical facilities and automotive industries. At the same time, they are the perfect choice for investors who prioritize passive income. Long-term leasing and stability are what investors should seek in 2025.

Fast-Food Cafés and Chain Restaurants: The Leading Place for Going Out in Urban Areas

An average fast-food restaurant uses NNN services from one landlord for 12.6 years. This industry has even survived the rise of food delivery apps and drive-through restaurants. This type of dining option not only prevails over restaurants and coffee shops. It is rising with the CARG rate of 6.05% in the 2021–2028 period. For an investor, such tenants also provide stability.

Chain fast-food restaurants choose NNN for an additional reason. By renting multiple triple-net properties in different areas, they automate the billing routine and reduce overall costs on renovation, insurance, property taxes, etc. The opportunity to manage all the bills instead of a landlord is beneficial for them – and desired for a property owner. This type of rental is popular in both large cities and suburban areas, as chain restaurants are rapidly developing.

Healthcare Facilities: High-Revenue Business Needed in All Areas

The healthcare businesses are profitable in the US due to high medical costs and demand. Stable demand for such institutions is another reason to choose them for triple net leasing. Renting a single facility for 10 or more years is a safe option for property owners.

While pharmacies don’t pose many conditions for a landlord – a property with a storage place is enough, urgent care institutions and hospitals prioritize extended renting options. A stable source of electricity with power generators, many bathrooms, and free rooms for patients, a well-structured building plan are only a part of the demands. Such type of leasing, hence, requires proactivity. A landlord needs to think about extra features and innovative utilities before searching for a client. Are you ready for this or not – here’s the question, determining the reasonability of such client choice.

Retail and e-Commerce: Low Property Demands

Compared to the previous industry, e-commerce chain businesses have low requirements. Usually, they need storage facilities, warehouses, customer support facilities, etc. Such facilities don’t require many extensions and extra features. Providing these clients with a stable source of electricity is practically enough.

Retail locations have an extra requirement for a location convenient for both clients and to organize logistics. Property in urban areas with great transport interchange is highly demanded.

For retail businesses, the opportunity to manage all the bills and space improvements is a great advantage that enables business growth and financial management. Hence, the NNN renting format in this industry is beneficial for both property owners and tenants.

Warehouse and Industrial Property: A Solution for Distant Areas

Property in city centers and urban areas is in high demand, which leads to price growth. Beginning investors cannot afford such property types and seek less-popular locations. If you’re a lucky owner of a large facility in a small town or suburbs, think about the industrial sector as your primary client.

Such businesses avoid cities due to high traffic, high demands for sustainability and carbon emission, and renting prices. Instead, they prioritize large spaces in distant areas. The key demands of such tenants are great infrastructure, stable sources of electricity and water, and long-term renting agreements.

Prioritize them over small-scale businesses. In these terms, leasing your property to market giants like Amazon and Walmart is the best possible solution. Such businesses are ever-growing. They expand to new territories, being a desired client for investors from towns and suburbs.

Wellness and Fitness: Rapidly Growing Industry

The wellness industry, including spa centers and gyms, reaches new heights every year. In 2023, for instance, it showed a 9% growth with a $6.3 trillion market volume. These businesses seek long-term rental options, just like NNN landlords. Here’s what you should know:

• As B2C businesses, these clients seek properties in populous locations;

• the key audiences of wellness centers are young people with above-average revenue levels, which increases the demand for large cities;

• connected with technologies, such businesses need power generators, as well as water supply and drainage;

• a great network of public transportation and parking lots are in high demand.

If you’re ready to provide your client with these features, choose the wellness industry without a doubt. Gyms, spas, and yoga centers focus on long-term cooperation, as a stable location is crucial for their clients.

Banks and Financial Institutions: Low-Risk Cooperation

In 2025, financial businesses are presented in two formats:

• physical banks and ATMs for a large network of clients;

• offices of digital banks and financial institutions that use properties for servers and customer care centers.

The demands of these two spheres are critically different. While physical banks seek cities and urban areas with great infrastructure, digital businesses are less demanding. Both, however, seek small facilities compared to the industrial sector and healthcare institutions. A single office is sometimes an option.

Financial institutions have well-structured business models and decent credit histories. They seek long-term renting and invest in the property. This is beneficial for you as a landlord: lease a property and forget about all the costs, renovations, and contented expenses. Plus, financial businesses are the most reputable and authoritative.

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Bottom Line About the Best Industries for NNN Investments

In an unstable economic situation, investors should choose industries with stable consumer demand. Fast food, medical spheres, retail stores, etc., are an essential part of urban areas – thus, investors should not worry about sudden tenant loss. In case you’re planning to build a passive NNN income, focus on stability and long-term rentals in 2025.

By providing tenants with freedom along with extra property features, you shape a mutually beneficial deal, which is highly demanded this decade.

FAQ’s

1. What are the key advantages and potential drawbacks of triple net (NNN) leases for both landlords and tenants?

Advantages for Landlords:

• Stable Income: Landlords receive predictable rental income since tenants cover property taxes, insurance, and maintenance.
• Lower Management Responsibility: Since tenants handle property expenses and upkeep, landlords have minimal involvement in daily operations.
• Attractive for Long-Term Investments: NNN leases often have long terms (10-25 years), reducing vacancy risks.

Advantages for Tenants:

• More Control Over the Property: Tenants can maintain and modify the property as needed without constant landlord approval.
• Lower Rent Rates: Because tenants cover expenses, base rents are often lower than traditional leases.

Potential Drawbacks:

• For Landlords: A financially weak tenant could default, leaving the landlord responsible for expenses and vacancies.
• For Tenants: They bear the full burden of maintenance and unexpected costs, which could become costly over time.

2. Which industries are identified as prioritizing NNN leases in 2025, and what factors contribute to their suitability for such lease agreements?

Industries that prioritize NNN leases in 2025 include:

1. Healthcare (Urgent Care, Dental, Veterinary Clinics) – High demand for healthcare services and long-term stability make these properties attractive.
2. Quick-Service Restaurants (QSRs) – Fast food chains and drive-thru concepts thrive on high-traffic locations with predictable revenue streams.
3. Convenience Stores & Gas Stations – Essential services that remain profitable in most economic conditions.
4. Pharmacies & Drugstores – Consistent consumer demand for prescriptions and over-the-counter medication ensures stability.
5. Grocery & Discount Retailers – Budget-friendly stores like Dollar General or Aldi continue to expand, securing long-term leases.
6. Industrial & Logistics (Warehouses, Distribution Centers) – The rise of e-commerce drives demand for logistics hubs.
7. Auto Service & Car Washes – The need for vehicle maintenance persists regardless of economic fluctuations.

These industries favor NNN leases due to consistent revenue streams, long-term market demand, and their ability to sustain operational costs without frequent landlord intervention.

3. How do economic conditions and consumer demand influence the stability and profitability of NNN lease investments in these industries?

• Economic Stability & Inflation: In times of inflation, landlords with NNN leases benefit as expenses are passed on to tenants. However, rising costs could impact tenant profitability.
• Consumer Demand Shifts: Essential services (healthcare, grocery, pharmacies) remain resilient, while discretionary spending (restaurants, retail) may fluctuate with economic downturns.
• Interest Rates & Financing: Higher interest rates can impact new real estate investments, potentially limiting expansion in certain sectors.
• E-commerce Growth: Industrial properties (warehouses, logistics centers) benefit from increased online shopping trends.

Overall, NNN investments in essential industries tend to be more recession-resistant, while sectors tied to discretionary spending may experience fluctuations based on economic conditions.

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