What Is a Triple Net (NNN) Property?
A triple net lease— abbreviated NNN — is a commercial lease structure where the tenant pays not only base rent but also the property's real estate taxes, building insurance, and maintenance expenses. In a true absolute NNN lease, the landlord's only responsibility is to cash the rent check; everything else is the tenant's responsibility, often including roof and structure.
NNN-leased properties are the most passive form of direct commercial real estate ownership. Combined with corporate-credit-backed tenants like Walgreens, Dollar General, McDonald's, Starbucks, AutoZone, 7-Eleven, Wawa, Chick-fil-A, and Aldi — and with lease terms typically 10–20 years plus renewal options — NNN properties deliver bond-like predictability with the inflation-hedging characteristics of real estate.
Why NNN Properties Are Popular with Florida Investors
- Passive Income — Minimal landlord responsibilities; the tenant manages the property.
- Predictable Cash Flow — Long-term leases with contractually scheduled rent escalations.
- Credit-Quality Income — Investment-grade or strong franchisee tenant guarantees.
- Florida Tax Advantages — No state income tax for Florida-resident NNN investors.
- 1031 Exchange Compatibility — NNN properties are the dominant replacement vehicle for Florida 1031 exchanges.
- Out-of-State Investor Friendly — Passive ownership requires no local presence, making NNN ideal for non-Florida residents seeking Florida CRE exposure.
- Estate Planning — Predictable income streams that pass cleanly to heirs.
Common NNN Tenant Categories in Florida
Dollar Stores
Dollar General, Dollar Tree, Family Dollar. The most active NNN category by transaction count. Corporate-guaranteed leases, 10–15 year terms, smaller deal sizes ($1M–$2.5M) accessible to individual investors.
Pharmacies
Walgreens, CVS, Walmart Pharmacy. Investment-grade tenants, longer leases (often 20–25 years), larger deal sizes ($4M–$10M+).
Quick-Service Restaurants (QSR)
McDonald's, Starbucks, Chick-fil-A, Taco Bell, Burger King, Wendy's. Corporate or strong franchisee guarantees; sometimes ground lease structures where the tenant owns the building improvements.
Convenience Stores & Gas
7-Eleven, Wawa, Circle K, RaceTrac. Strong tenant credit; often long-term leases with environmental considerations on legacy fueling sites.
Auto Parts & Service
AutoZone, O'Reilly Auto Parts, Advance Auto Parts, Take 5 Oil Change, Christian Brothers Automotive. Investment-grade or strong-franchisee credit.
Medical & Dialysis
DaVita, Fresenius Medical Care, urgent care concepts. Healthcare-credit tenant exposure with long lease terms.
Grocery & Specialty Retail
Publix (Florida-dominant), Aldi, Trader Joe's, Sprouts. Larger deal sizes; strong credit; long terms.
Florida NNN Cap Rate Ranges
- Investment-Grade Credit, 15+ Year Lease (Walgreens, McDonald's corporate, Chick-fil-A): 5.0–5.75%
- Strong Franchisee, Long Lease (large QSR franchisees, well-capitalized C-store operators): 5.5–6.5%
- Mid-Tier Credit / Shorter Lease: 6.25–7.5%
- Lower-Credit Franchisee / Older Lease: 7.0–8.5%
- Ground Leases to Investment-Grade Tenants: 4.5–5.5% (lower because tenant owns improvements)
NNN Properties as 1031 Exchange Replacements
NNN properties are the single most popular replacement vehicle for Florida 1031 exchange investors — and for good reason. A retiree selling a 50-unit apartment building can identify and close on a $5 million Walgreens-leased property within the statutory 180-day window, eliminate all property management responsibility, lock in a 20-year corporate-credit income stream, and defer all federal capital gains tax.
Combined with Florida's absence of a state capital gains tax, the result is one of the most powerful wealth-preservation maneuvers available in U.S. real estate. Linton Global Solutions executes Florida NNN identification and acquisition for 1031 investors regularly — typically with both on-market and off-market inventory unavailable through retail listing platforms.
Financing Florida NNN Properties
- CMBS Conduit Loans — Dominant for $2M+ NNN properties. Non-recourse, 65–75% LTV, 10-year fixed terms, attractive rates for credit-tenant properties.
- Life Company Loans — Strongest pricing for trophy NNN with long-lease, investment-grade tenants. Lower leverage (60–65% LTV) but lowest rates.
- Credit Tenant Lease (CTL) Loans — Specialized loan structure underwriting the tenant's credit rating rather than the property; available for investment-grade tenants only.
- Bank Balance Sheet — Accessible for smaller deal sizes and relationship borrowers.
Who Should Buy NNN Properties?
- 1031 exchangers seeking passive replacement property
- Retirees converting wealth from active ownership to passive income
- Out-of-state investors wanting Florida CRE exposure without local management responsibilities
- Family offices managing multi-generational real estate portfolios
- Investors seeking inflation-hedged predictable income
Why Choose Michael R. Linton for Your Florida NNN Acquisition?
NNN transactions appear simple — a credit-tenant property with a long lease — but the difference between an acceptable cap rate and an exceptional cap rate often comes down to off-market access, broker relationships, and 1031 exchange execution discipline. Michael R. Linton has been transacting Florida NNN for nearly four decades, maintains a proprietary inventory not visible on listing platforms, and coordinates 1031 timelines, qualified intermediary selection, lender relationships, and tenant estoppel certificates as part of every closing. Combined with REOMind.ai's 96% valuation accuracy, this is institutional-grade execution available to investors of any size.
Frequently Asked Questions
What is a triple net (NNN) lease?
A triple net (NNN) lease is a commercial lease structure where the tenant is responsible for paying property taxes, insurance, and maintenance expenses in addition to base rent. The landlord receives essentially passive income with minimal property management responsibilities. NNN leases are the dominant structure for single-tenant net-leased investment properties.
Why are NNN properties popular with Florida investors?
NNN properties offer passive income with predictable cash flow, long lease terms (often 10–20 years with renewal options), corporate-guaranteed credit tenants (Dollar General, Walgreens, McDonald's, AutoZone, 7-Eleven, Wawa), and minimal landlord responsibilities. Combined with Florida's no-state-income-tax advantage, NNN properties are particularly attractive for retirees, passive investors, and out-of-state buyers seeking Florida exposure.
What cap rates do NNN properties trade at in Florida?
Florida NNN cap rates vary by tenant credit, lease term remaining, and location. Investment-grade credit tenants (Walgreens, McDonald's, Starbucks) with 15+ year leases trade at 5.0–5.75%. Non-investment-grade or franchisee deals trade at 6.0–7.5%. Older leases with shorter remaining terms trade at higher cap rates. Locations in growth submarkets command premium pricing.
Are NNN properties good 1031 exchange replacements?
NNN properties are the most popular 1031 exchange replacement vehicle for passive investors. The combination of corporate-credit-backed income, long lease terms, minimal management responsibility, and predictable income makes them ideal for investors transitioning from management-intensive properties (apartments, retail centers, office buildings) into passive ownership. See our <Link href="/1031-exchange">Florida 1031 Exchange Center</Link>.
How do I buy a NNN property in Florida?
Michael R. Linton at Linton Global Solutions maintains active NNN inventory across Florida — both on-market and off-market opportunities. We coordinate financing through CMBS, life company, and bank lenders, and execute 1031 exchange identification and closing within strict statutory timelines. Call (312) 612-1031 to request current NNN inventory.
Article Summary
NNN (triple net lease) properties are the most passive form of commercial real estate ownership and the most popular 1031 exchange replacement vehicle for Florida investors. Tenants like Walgreens, Dollar General, McDonald's, Starbucks, AutoZone, and Wawa provide corporate-credit income with 10–20 year leases at cap rates ranging from 5.0% to 8.5% depending on credit quality and term remaining. Combined with Florida's no-state-income-tax advantage and the federal capital gains deferral of a 1031 exchange, NNN properties are uniquely positioned for retirees, out-of-state investors, and wealth-preservation strategies. Michael R. Linton at Linton Global Solutions has 39 years of Florida NNN transaction experience and maintains active on-market and off-market inventory.
Key Takeaways
- ✓NNN leases shift property taxes, insurance, and maintenance to the tenant, creating passive landlord income.
- ✓Credit-tenant NNN cap rates in Florida range 5.0–5.75% for investment-grade tenants with 15+ year leases.
- ✓Dollar stores, pharmacies, QSR, c-stores, auto parts, medical, and grocery are the most active NNN tenant categories.
- ✓NNN properties are the dominant 1031 exchange replacement vehicle for passive investors.
- ✓Florida's no-state-income-tax advantage compounds the appeal of NNN income for resident investors.
- ✓CMBS, life company, and credit tenant lease (CTL) loans are the most common NNN financing structures.
- ✓Out-of-state investors use Florida NNN to gain Florida CRE exposure without local management responsibilities.
- ✓Off-market NNN access through Michael R. Linton delivers cap rate advantages not available on public listing platforms.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving 500+ banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
Ready to Talk About Your Florida NNN Deal?
Get a free consultation with Michael R. Linton — 39 years of Central Florida CRE experience. Zero pressure.
Schedule a Free ConsultationWorks Cited
- Boulder Group. "Net Lease Market Report." The Boulder Group, https://bouldergroup.com/net-lease-research/. Accessed Jun 6, 2026.
- CCIM Institute. "Net Lease Investment Analysis." CCIM Institute, https://www.ccim.com/. Accessed Jun 6, 2026.
- NAREIT. "Net Lease REIT Industry Data." National Association of Real Estate Investment Trusts, https://www.reit.com/. Accessed Jun 6, 2026.
- Internal Revenue Service. "Like-Kind Exchanges Under IRC Section 1031." IRS, https://www.irs.gov/pub/irs-pdf/p544.pdf. Accessed Jun 6, 2026.
- Federation of Exchange Accommodators. "1031 Exchange Resources." FEA, https://www.1031.org/. Accessed Jun 6, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.