Net leases: what are they and why are they so popular?
Article Abstract:
Net leases are in single net, triple net, and bondable form. All forms of leases use rental adjustments to preserve the investment yield required by the lessor. These rental adjustments include short-term leases, index leases, reappraisal clauses, step-rate leases, and escalator leases. Net leases are used as substitutes for rental adjustments and guarantee a constant net operating income over the lease term. The net lease provides a lessee protection from future rent increases, and reduction of investment risk for the lessor. Net leases are bondable, so they can be securitized and be placed on either public or private market.
Publication Name: Real Estate Finance Journal
Subject: Real estate industry
ISSN: 0898-0209
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
The appropriate solution: synthetic leases vs. bond net lease
Article Abstract:
An analysis was conducted on the basic structure of the synthetic lease, the accounting position of the lessee, the after-tax position of the lessee, the benefits and disadvantages of this type of lease and its comparison with the traditional bond lease. Findings suggested that synthetic leases may be reasonable alternatives to other forms of short-term financing but they are not appropriate solutions to the long-term financing of long-term assets.
Publication Name: Real Estate Finance Journal
Subject: Real estate industry
ISSN: 0898-0209
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Net leases as real estate investments
Article Abstract:
The net lease is again considered a viable real estate investment structure. General information on net leases as investments is presented. The triple net lease, because it provides benefits to both tenants and investors, is a preferred lease form. Net leases are bondable, and they can therefore be securitized and issued on private or public markets.
Publication Name: Real Estate Review
Subject: Real estate industry
ISSN: 0034-0790
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Environmental liabilities as they relate to real estate: recent developments. How real estate developers should use the AICPA's new rules regarding "plain paper" financial statements
- Abstracts: Cost segregation. Hard-money loans: the new generation of real estate investment. The near extinction of the traditional due diligence period; what to expect and do if you area a prospective buyer in a competitive investment sales process
- Abstracts: Leases: what is the right term structure? How market opinion leaders view commercial office building investment opportunities in Chicago's CBD
- Abstracts: The effect of REIT mergers on REIT stock prices. The REIT industry in the next four years: a glance around the corner. (real estate investment trust)
- Abstracts: Over here, over there. A lesson in regeneration. Roundabout route to success